WEATHER: COOLER TEMPERATURES MOVING THROUGH
A cold front is moving through the US, bringing cooler temperatures and higher demand, which could explain our high electricity rates.
However, it is not expected to be a strong cold front and could give way to warm tropical air pushing up through Florida and Texas.
HIGH PRODUCTION AND MILD WEATHER WILL LEAD TO LOWER PRICES IN THE FUTURE.
SUPPLY IS UP, BUT SO IS DEMAND.
- While 2023 continues to trade lower than 2024, 2025, and 2026. all four years have seen drops in pricing over the last two weeks due to mild weather and good storage numbers.
- Freeport is now ramping up exports. The facility is now approved for processing natural gas received via pipeline into liquid natural gas for shipment overseas.
- First Energy released the official rates that include capacity, and the new rates will come in just above $0.12 per kWh when capacity and other charges are added. This will double the previous rate and is a good half-penny higher than most retail rates.
NATURAL GAS STORAGE REPORT
The Freeport facility has final approval to process liquid natural gas (LNG) for shipment overseas. Expect more LNG facilities to come online in the next 2-5 years, which could come close to doubling our export ability. Unless we ramp up production to meet the increased exports, the domestic supply of natural gas will be well short of what is needed, and prices will rise accordingly,
Only a few weeks remain in the official withdrawal season, with injection season beginning May 1st. Last week we already saw an injection of +25 Bcf, our second injection of the year.
Electricity News
First Energy announced the results of their final three auctions. The final auction had five winning bidders and settled at $83.75. Along with the October 2022 auction at 122.20 and January’s auction at $99.77, the final rate for June 2023 through May 2024 will be just over $0.12 per kWh once capacity is included
PJM BGE HUB FORWARD POWER PRICING
PJM ADHUB HUB ON-PEAK ELECTRICITY 2023
