© 2019 by TRUELight Energy LLC

  • LinkedIn Social Icon
  • Twitter Social Icon

ISONE capacity clearing prices released, gas storage numbers stay strong

ISONE released the results to its 14th Forward Capacity Auction for the 2023-2024 delivery year. Gas storage continues strong run through last week of Jan, headroom is available in NH, and PA considers changes to its retail supplier marketing rules.


Natural Gas

  • The March 2020 NYMEX Henry Hub forward contract remained the same at $1.861/MMBtu from the previous Wednesday. The price of the 12-month strip averaging March 2020 through February 2021 futures contracts decreased $0.03 (-1.4%) to $2.147/MMBtu.

  • For the week ending January 31, the EIA reported net withdrawals from storage of 137 Bcf, which is lower than last year’s net withdrawals of 228 Bcf for this week and lower than the 5-year (2014–18) average net withdrawals of 143 Bcf.

  • Working natural gas in storage totaled 2,609 Bcf, which is 615 Bcf (30.8%) higher than last year’s working gas totals of 1,994 Bcf at the same time and 199 Bcf (8.3%) higher than the 5-year (2014-2018) average of 2,410 Bcf. Total working gas is within the five-year historical range.


Power

  • The ISONE Mass Hub On-Peak Winter 2020-2021 forward electricity strip is up 2.0% week over week but is down 11.0% in the last month.

  • For those looking to hedge their ISONE Mass Hub On-Peak load, we see value in hedging March 2020 through April 2022 terms. Contact TrueLight to stay on top of value in current forward curve pricing and learn more about our portfolio management execution expertise.


Utility Highlight

  • Our forward headroom models indicate there is headroom starting March 1, 2020 for 3 and 6 month contracts for Liberty Utilities General Service (A1) customers in New Hampshire.

  • Pennsylvania is considering reforms to its residential retail supplier marketing rules, as the state Public Utility Commission’s Office of Competitive Market Oversight (OCMO) is requesting comments on potential regulation changes. The proposals include requiring brokers to disclose affiliations with retail suppliers and forcing suppliers to flag rates which meet a certain threshold above the utility price-to-compare (PTC), such as rates that are 150% times the PTC. Additional considerations include new rules for telemarketing, renewable energy product marketing, and direct mail and face to face marketing. Let TrueLight help you stay on top of current rates and subscribe to our PTC tracking and headroom reporting or use our price verification service to ensure you stay on top of all utility rate changes. Let TrueLight help you stay on top of current rates and subscribe to our PTC tracking and headroom reporting or use our price verification service to ensure you stay on top of all utility rate changes.

Clean Energy

  • The New York State Energy Research and Development Authority (NYSERDA) plans to issue another offshore wind request for proposals (RFP) this year, according to its request filed with the NY Public Service Commission in late January. This request will solicit at least 1 GW of offshore capacity and consider proposals for up to 2.5 GW. NYSERDA cited further reductions in offshore wind costs as well as Governor Andrew Cuomo’s recommendation that the state request bids for more offshore wind capacity in 2020 as reasons for its new solicitation plans. New York has some of the most ambitious clean energy goals in the country, including a target of 9 GW of offshore wind by 2035. Contact us for advice on renewable generation project development.

Market Intelligence

  • ISO New England released its clearing prices for the 14th Forward Capacity Market (FCM) primary auction last week, announcing a preliminary price of $2.00/kW-month for the entire New England region in the 2023-2024 delivery year. The ISO-wide clearing price is the lowest ever in the FCM’s history and marks a reduction from last year’s price of $3.80/kW-month. ISO-NE reported that 33,956 MW of capacity are committed for the 2023-2024 delivery year, which represents a surplus of 1,466 MW above the 32,490 MW net installed capacity requirement. Contact TrueLight Support for analysis of the most up-to-date energy market news or use our price verification service to ensure the most recent market shifts are reflected in your price quotes. Contact TrueLight Support for analysis of the most up-to-date energy market news or use our price verification service to ensure the most recent market shifts are reflected in your price quotes.

Weather

  • The 8-14 day forecast beginning February 18th favors below average temperatures for the Rockies and above-average temperatures east of the Rockies and in California. Lower than average precipitation is forecast for California and parts of the Rockies as well as Florida, while wetter than normal conditions are forecast for most of the east.