US power and natgas prices soar
Friday, 20 May 2022
WASHINGTON, May 19 (Reuters): US spot power and natural gas prices soared on Thursday to their highest in over a year in several parts of the country as consumers cranked up air conditioners to escape an early spring heatwave.
Even before the latest heat, gas futures were already trading near a 13-year high as much higher prices in Europe and Asia kept demand for US liquefied natural gas exports strong, especially since Russia's Feb. 24 invasion of Ukraine.
In Pennsylvania, next-day power at the PJM West hub and gas at the Dominion South hub rose to their highest since the February freeze in 2021.
AccuWeather forecast high temperatures in Philadelphia would jump from 79 Fahrenheit (26.1 Celsius) on Thursday to 87 on Friday and 95 on Saturday. The city's normal high is 75.
In Texas, the Electric Reliability Council of Texas (ERCOT), which operates the grid for most of the state, forecast demand would peak at a monthly record on Thursday.
ERCOT said the grid had enough resources to meet demand early on Thursday.
But at the start of the current heat, ERCOT was forced to urge conservation on May 13 after several power plants shut unexpectedly, causing real-time prices to soar to over $4,000 per megawatt hour (MWh). read more.