Platts: Cheap gas, nuclear energy depress NYISO prices

Dive Brief:

Real-time locational marginal prices declined to $28.64/MWh last month, down from almost $31/MWh in April, according to a Platts report on a New York ISO Business Issues Committee meeting last week.
Those prices are still above comparable 2016 levels, the committee noted. May 2016 prices averaged about $22/MWh.
Earlier this month, the grid operator indicated it would have sufficiency energy supplies to meet summer demand. New York ISO anticipates a total of 41,013 MW of power resources available to meet forecasted peak demand conditions.

Dive Insight:

Energy prices fell slightly in May, as New York's nuclear generation rose and fuel prices remained moderate. Looking ahead, the grid operator expects to have adequate supplies—though it will face a spike in demand this year.

New York ISO says peak demand this summer will reach 33,178 MW, about 3% above the 10-year average.

To meet that demand, New York has 37,609 MW of generating capacity from in-state power plants, 1,191 MW of demand response resources and 2,213 MW of net purchases and sales from neighboring regions. "Based on historical performance, the net resources assumed available to serve during the summer peak total 36,184 MW," the ISO said.

An increase in nuclear generation helped moderate prices last month. Outages declined significantly from April to May; last month, capacity offline averaged less than 400 MW/day—down from about 1,500 MW/day in April.

This year, New York ISO is operating with a reserve requirement of 2,620 MW. The combination of the peak demand forecast and operating reserve results in a total capacity requirement of 35,798 MW, according to the ISO.

Keeping the state's nuclear plants online is a key strategy for New York to meet emissions goals and keep its system reliable.

The New York Senate has voted in favor of a bill to reallocate funding for the Zero Emissions Credits aimed at saving the state's nuclear facilities. But the program has come under fire at the Federal Energy Regulatory Commission, from generators who say the program intrudes on federal jurisdiction of wholesale markets.