Energy Market Update

Electricity Market

Wholesale electric prices over the report week were overwhelmingly flat, with the exception of ERCOT which again moved higher. In addition to the coal plant closure announcements and nervousness about load reliability during the summer, the economy in Texas has been heated. Energy prices in this market are unrestrained which could cause some anxiety moving forward.

As the long run of above average weather ended, more normal conditions caused a slight uptick on the day-ahead market for ISO-NE. The storm at the beginning of the report week did not have any serious impact on prices. There was the presence of rain and snow but no real extreme cold.

Natural Gas Markets

The 12-month strip was up $0.10 across the board. As Spring and warmth is approaching, we may see a weakening of demand. Over the last few years $3.00/MMBtu seems to be the “normal” range that natural gas has settled into the last half of the year or so.

Six-Month Natural Gas Futures

Futures as of 3/7/18 versus previous week:

Apr.  $2.777    +0.110

May. $2.806    +0.110

Jun.   $2.847    +0.112

Jul.    $2.892    +0.113

Aug. $ 2.899   +0.108

Sep.  $2.878   +0.105

Natural Gas Inventory

As of Friday, March 2, 2018, working gas in storage was 1,625 Bcf. According to EIA estimates, this represents a net decrease of 57 Bcf from the previous week. This was in line with market expectations, and as a result the market moved down slightly for the first time in a while. There was a 57 Bcf withdrawal last year as well and the five-year average is 129.

NG Rig Count

The Baker Hughes exploration gas rig count increased by 7 rigs to a total of 188 rigs. The report total is 37 rigs more than in operation last year when there were 151 rigs.

Weather Update

The Western CONUS is expected to see some cooler-than-normal temperatures through the middle of March. The NOAA forecast is calling for a return of the warmer-than-normal temperatures for much of the East and South.

National Weather Service Updates (NOAA)

Hurricane Watch- No Activity: Click here to view the National Hurricane Center site.

Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.

Energy News & Resources

PSEG Canceling Nuclear Plant Spending Due to Stalled Bailout

TRENTON, N.J. — New Jersey’s largest utility is canceling spending on capital projects at a nuclear plant because a $300 million taxpayer-funded financial bailout of the state’s nuclear industry has stalled in the Legislature.

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Disclaimer: This information is provided for the use of our customers and potential customers. Power Management Company assumes no responsibility or liability for the accuracy or completeness of pricing or information in this document. Historical data was obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. It is not intended to provide advice or recommendation. Views are subject to change without notice.