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What’s the pricing forecast for energy in 2019?
In this week’s Energy Market Update, Direct Energy Business Strategist, Tim Bigler, talks about regional energy fixed prices, and why you might be seeing a slight separation between gas and electricity price trends.
Watch the video below to learn more.
2019 Regional Natural Gas Fixed Prices
In most areas of the United States, natural gas is a crucial factor in power generation. So, price is important for a number of reasons.
2019 Regional ATC Electric Energy Prices
New England and New York City are constrained natural gas areas and are therefore seeing higher electricity prices.
ERCOT is retiring almost 5,000 megawatts of power generation. So, we’re seeing July and August prices jump up to $50-80 per megawatt hour. Regulatory risks are also lowering the reserve margin, adding strain and risk premiums in the summers.
In Illinois, we’re seeing price reactions to their access to gas through the Rover pipeline.
In PJM W Hub, we’re also seeing fear of retirement reflected in PJM W Hub electricity prices.
However, there’s something new happening across markets in many areas. Power prices are starting to reflect retirement and regulatory risks in the marketplace. We’re seeing these prices separating slightly from gas, even when gas is flat.
Stay tuned to the Direct Energy Business Blog for the latest market news and information.
Posted: April 17, 2018