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Thursday May 24, 2018   
When taking the size of the market into account, SPP currently holds the largest proportion of wind in the United States. As the region's renewable portfolio grew, the grid's transmission grid could not keep up as bottlenecks (congestion) started to show up and/or there was just too much supply on the grid that curtailments were inevitable.  We discussed such events in one of our Newsletters a couple of weeks ago titled 'SPP Weekend Update'.   Once curtailments were a common thing within SPP, the ISO began publishing curtailment data in October 2017.  This data told us a lot about the grids make-up at the time as we initially saw a significant portion of wind generation being curtailed. The market just couldn’t handle the amount of wind resulting in up to 2 GW of ... » read more
Wednesday May 23, 2018   
Competitive Power Ventures' (CPV) Towntic power plant has entered the ISONE Day-Ahead market for the first time this week.  The 785 MW gas fired combined cycle plant located in Oxford Connecticut was slated to come online 6/1 but appears to have entered the DA at near full capacity for Monday,Tuesday and Wednesday this week (it should be noted that we have discussed this topic extensively in our Northeast Power Package that covers the ISONE, NYISO and PJM markets).  We discussed what Competitive Power Ventures has in store in the coming months in the the Newsletter Blog titled 'The New Kids on the Block'. Figure 1 | CPV Towantic Energy Center  ISONE has updated their interconnect queue and moved the operational start date to the 21st however the gas noms and power ... » read more
Tuesday May 22, 2018   
Late last week the California Public utilities Commission (CPUC) approved a draft proposal to once again inject natural gas into the beleaguered Aliso Canyon storage facility. As you may remember the cavern suffered a catastrophic failure in October of 2015 which allowed 4.6 BCF of inventory to escape into the atmosphere. The surrounding communities were evacuated as a result and more than 6,000 families had to find temporary shelter. This latest disaster follows other recent events like the PG&E-San Bruno Explosion and the San Onofre Nuclear Generating Station leak which have created a rift of mistrust between state residents and its own investor owned utilities. Consequentially, the State Legislature passed SB 380 which put a moratorium on gas injections at the site until it ... » read more
Monday May 21, 2018   
Purchasing items online is a common occurrence nowadays with the likes of Amazon Prime or any other competing delivery systems.  If you are a person who does not do much of this, you probably still get a couple of things off the internet that will need to be paid for prior to shipping.  There is still the over the phone purchases that have some sort of human communication to make sure the correct items are in your shopping cart prior to check out.  Speaking of checking out, no matter what method you are comfortable with, the payment structure ultimately takes you to the question of what is your CVC or CVV code? Figure 1 | Credit Card CVC/CVV Numbers CVC stands for Credit Verification Code while CVV is the acronym for Credit Verification Value, both are synonymous ... » read more
Friday May 18, 2018   
REsurety and EnergyGPS recently released a report analyzing the efficacy of the “P99 wind hedge”, which is the most commonly used wind hedge structure, most frequently used in markets such as ERCOT and SPP. The report is free and can be downloaded here: https://gallery.mailchimp.com/104613d0ee66cc3dcc6a3820d/files/b98da7c4-4d93-45f1-a586-76df5ed905fa/The_P99_Hedge_That_Wasn_t_a_REsurety_and_Energy_GPS_White_Paper.pdf For those readers not familiar with the standard transaction structures in the wind industry, there are two reasonably standard structures: As-Generated (or unit contingent) sale at the project node or a market hub. The project generates and delivers the energy as it is produced to the buyer. This structure is most common for utility off-takes and corporate ... » read more
Thursday May 17, 2018   
AESO just can’t seem to catch a break as the grid was short on supply entering this week causing the LMP to jump to the price cap of $1000 for several peak hours on Monday and Tuesday. As we had mentioned in our newsletter last week, the amount of generation AESO is able to keep on the grid is key to avoiding these price spikes, but AESO is still trudging through maintenance season. With several large facilities offline at the beginning of the week, we can see that this event was no exception. Figure 1 | AESO Hourly LMP May 14-15 Three major coal units were offline as we entered the week reducing coal capacity by 1.2 GWa. Sundance #4 was previously offline for maintenance, but Keephills #1 and Sundance #6 both went off at the beginning of the week which moved coal outages up ... » read more
Wednesday May 16, 2018   
The CPV Valley Energy Center is a newly built 670 MW natural gas fired generating station in Orange County, NY.  The plant was scheduled to come online this summer and the construction of the facility itself seemed to be humming along without much delay.  There was however considerable debate and delays regarding the 7.8 mile natural gas pipeline lateral that will run from the Millennium mainline to the plant.  Figure 1| Valley Lateral Pipeline Map There were various environmental issues that needed to be resolved in order to complete the pipeline which appeared to delay the pipe construction long enough to potentially miss the expected 6/1/2018 startup date.  However, multiple articles have been released that quote CPV, confirming the June start up, indicating ... » read more
Tuesday May 15, 2018   
Call it an annual case of bad timing but it seems like once in spring the country gets hit with an early bout of summer just as generation outages are peaking. This week the Northeast and Midwest are the unlucky ones with heat indexes pushing to the mid 90's. That is taking the on peak net load in PJM from 80 over 100 GWa this week. MISO is fairing similarly with the net load moving from 75 to 87 GWa. With many generators removed from the stack for outages, the regions are having to meet the jump in load with natural gas generation. Burns are already extraordinarily high versus last year's comparison due to the ongoing conversion of the coal fleet.  Figure 1 | PJM Net Load for April 24 to June 1 - Dotted Line is Forecast The move up in load is usually reserved for a hot day in ... » read more
Monday May 14, 2018   
Each quarter the CAISO releases a report that summarizes the economic benefits of the energy imbalance market (EIM).  On April 30th, the most recent release of the report was sent out, and can be found here.  It concludes that this past Q1 there was $42 million in gross benefits, and that since the EIM's inception in November of 2014, there have been $330 million in benefits.  While these numbers are wonderful, and certainly prove that the EIM is overall a good thing for its participants, one should question what is at the core of these benefits.  To start off let's look at the last six days of EIM transmission flows, as seen in Figure 1.     Figure 1 | CAISO > PNW (AC) Flows (top) and CAISO > DSW Flows (bottom) - Negative Flows are Moving Out of ... » read more
Friday May 11, 2018   
CPUC's Green Book on Customer Choice: Looking for Solutions in All the Wrong Places? On May 3, the California Public Utility Commission (CPUC) released its highly anticipated report entitled “Customer Choice: An Evaluation of Regulatory Framework Options for an Evolving Electricity Market.”  Dubbed the "Green Book," the draft report contains an in depth discussion of the issues faced by California as it simultaneously grapples with (1) the transformation of its energy stock reflecting its RPS and decarbonization targets and (2) increasing customer load migration to non-utility suppliers via customer choice.  The Green Book is the culmination of a year-long, multi-agency proceeding, dubbed the California Customer Choice Project.   CPUC Green Book staff have ... » read more
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