Dive Brief:
- Prices in the New York ISO's western zone jumped past $1,000 per MWh on last Thursday, Platts reports, at the same time exports to neighboring PJM Interconnection rose.
- Wholesale power prices in PJM rose during the first months of 2015, jumping $10 to $64.10/MWh, driven in part by a harsh February when demand and energy costs soared, according to a markets report from the grid operator.
- However, PJM also said its load-weighted locational marginal price for April was $30/MWh, the lowest seen in the last two years and 25% lower than the previous two Aprils.
Dive Insight:
Two major east coast regional markets last week indicated they had seen prices rise, but at least in New York it appeared to be an isolated incident.
Platts reported tthat New York ISO prices on Thursday reached almost $1,300 per MWh just before 10 a.m., roughly the same time exports to PJM jumped. Within a half hour, however, prices had fallen back to below $20 per MWh.
PJM itself released market data last week showing a harsh February had raised average energy costs in the region, but otherwise it appeared they were moderating. The operator said its operating reserve costs had reached their lowest level in the 2011-2015 period.
Heating degree days in April were approximately 16% lower than an average April, PJM said, and energy use was approximately 2% lower this year than on average.
"With the end of winter, congestion patterns have started to change with lower gas prices in the Marcellus production area and more congestion in the eastern portion of the system," according to the operator's report. "In contrast, overall 2015 congestion showed the prevalence of west-to-east flows as gas prices were higher in the east and coal generation in the west was being run more often."
PJM saw its own power prices spike last month when a power outage left 28,000 customers in the District of Columbia and Maryland in the dark. The locational marginal price for BGE exceeded $500 per MWh, and Pepco prices reached approximately $400 per MWh.
