US Power Market Update - 15 Nov. 2021

Market Commentary

The natural gas storage report for the week ending 11/5 indicated a small injection of 7 Bcf, which fell on the low side of expectations. This injection was short of the 5-year average build, but slightly better than the injection for the same week of last year.

Inflated Winter '21/'22 power market futures continued their dip this week, with CAISO and New England showing the sharpest declines. ISO-NE has seen its winter strip shed $20/mWh over the last two weeks alone. Summer 2022 moved very little, week-over-week. Although outer year positions in 2023 and 2024 saw minimal movement, it was once again consumer- friendly.

Budget-conscious end users seeking coverage for the upcoming winter have finally seen some improvement in near-term pricing, however the markets remain in an inflated state. Long-term hedging strategies remain untimely, with options likely to be more attractive in late Q1 or Q2 2022. The prime risk remains a colder-than-average winter, which would put upward pressure on prices. For organizations with the budgetary means, shorter-term bridge positions are preferable until the markets retreat from their inflated state.

Regional LMP Movement

It was a week of LMP pull-back, as both PJM and New England saw spot prices decline by more than 10%. ERCOT saw the most significant movement, trending 23% lower than the previous week. NYISO remained relatively stagnant, week-over-week.

The information above is an excerpt from the applicable report referenced above. For a full and complete copy of this report please complete the form below, sign up for our newsletters or schedule a virtual meeting at your convenience.

Get The Full Report Delivered To Your Inbox

Fill out the form below and we'll send you the full report.

1 Your Details

2 Company Details

By submitting this form you agree to let NUS follow up with you related to your inquiry. Your information will be used for these purposes alone, we never buy, sell, or trade your personal data. For more information, please see our Privacy Information.