Energy Solutions - Research, Trading and Management  Call Us | Contact Us Client Login
Featured Articles
Wednesday Jun 13, 2018   
Over the past couple of weeks, we have written about the weather in ERCOT as well as the recent price spike that drove HE 16 on June 5th up to $8,000 (ERCOT's Price Spike).  In the article underlined, we detailed the key components one needs to watch for as we move into the back half of June and look forward to the months of July and August.  One of the key components is the ERCOT wind profile as its volatility has an impact on the net load numbers on the grid. Figure 1 | ERCOT Wind Generation Hourly Profile - Actual and Forecast In the graph above, it shows the hourly ERCOT wind generation by day for the last 8 days as well as the next 7 day forecast.  If you look to the far left, you will see the later afternoon hours dip down below 1.8 GW HE 14 and sit around the 2.1 GW ... » read more
Tuesday Jun 12, 2018   
SoCal Gas continues to have a number of issues on their system that are expected to continue through next winter. Pipeline capacity into the Los Angeles Basin is severely restricted due to a number planned and forced outages. The result is that moderately high gas demand days will have to be met with storage draws to maintain pipeline reliability. That poses a bigger problem. The beleaguered Aliso Canyon storage cavern has also added to the supply woes because of the restraints placed upon its use by the California Legislature. The government imposed mandate will keep the regions largest storage cavern sitting on the sidelines unless its usage is deemed crucial to maintaining system integrity.   In anticipation of the supply issues during the peak of summer heat, SoCal ... » read more
Monday Jun 11, 2018   
A month ago in a newsletter found here, we discussed the fact that the bulk of the CAISO's stated quarterly economic benefits are mainly driven by the fact that the $10 to $30/MWh in transmission costs that participants see in the day ahead WECC markets, simply vanish in EIM.  In today's Newsletter I would like to discuss what companies will benefit most from a market that is more about optimizing free transmission than it is about true imbalance (generation/load deviation from forecast).  With that, let's start off with this past quarter's benefits, as seen in Table 1.  You will notice in here that the CAISO, PacifiCorp, and APS are the biggest winners, with the first two making the majority of the haul.  The CAISO's benefits are pretty obvious, as they are able ... » read more
Friday Jun 8, 2018   
As an electricity market analyst I’d like to take this opportunity to thank the states of Texas and California for keeping work interesting for me (and keeping me employed). As the grid continues its long journey transitioning from thermal resources to renewables, California (What's your CCV West Power?) and Texas (ERCOT's Price Spike, The Heat is On (ERCOT Stack) are the pioneers. These unlikely renewable bedfellows have taken very different paths to this point and likely have different paths looking forward. The ERCOT renewable engine runs on a combination of abundant, cost-effective renewable resources and competitive market forces. Renewables are cheap compared to other alternatives, and forward curves support new build economics. Importantly, the renewable build out in Texas ... » read more
Thursday Jun 7, 2018   
Last week saw some of the strongest Zone A LMPs in recent memory as they jumped to $125 in the OPA for Friday June 1st. While temperatures were moderate throughout the state, multiple transmission lines throughout the Zone took planned outages. The Niagara – Robinson 230 kV line was the first to go offline on the 29th instantly congesting flows out of Niagara. The next day, two Niagara – Packard 115 kV lines took outages adding fuel to the fire. As we will see, these flows out of Niagara are important to keeping energy flowing freely. Figure 1 | Zone A 7-Day Day Ahead LMP and MCC   The issue with this particular region is that nearly all the local generation comes from the hydro facility out of Niagara. As the 345 kV steps down to smaller lines, it begins to congest as ... » read more
Wednesday Jun 6, 2018   
The beauty of both the natural gas and power markets is you have an opportunity everyday to take a position based off of technical trading and/or the market fundamentals.  Here at EnergyGPS, our focus is on the latter as we feel it gives you a good idea of what is happening on the ground while allowing you insight to what will be happening in the future.  On the natural gas side of the equation, the pendulum has swung back in favor of the basis points (hubs) as the production continues to grow in certain areas as well as LNG demand and transports constraints into the demand areas of Southern California (What is your CCV West Power?). Figure 1 | The Pendulum is Swinging We should not forget about our friends to the north AECO continues to be one of the most volatile ... » read more
Tuesday Jun 5, 2018   
Natural gas balancing has seen quite a few supply/ demand changes this year. The winter started off with a bang when the EIA posted a record draw for the first week. By the time we moved into the month of February the cash values around the country were back down below the price of coal forcing gas fired generation to adjust their dispatch. The reduced gas prices relative to stronger coal pricing forced up power burns. March and April had record heating degree days in the Plains which caused ResCom demand to jump up to all-time highs. More recently, spring has been reduced to a two week event as above normal temperatures have driven up the cooling load across the Lower 48. Most would have thought that demand side shocks like what we have experienced would lead to some price ... » read more
Monday Jun 4, 2018   
This is the time of year when various commissions come out with their assessment of the electricity and natural gas grid's ability to meet peak load for the upcoming summer.  A week ago the North American Electric Reliability Corporation (NERC) put out their 2018 Summer Reliability Assessment.  A week prior to that the Federal Energy Regulatory Commission (FERC) put out their Summer 2018 Energy Market and Reliability Assessment.  A week prior to that the California Independent System Operator (CAISO) put out their 2018 Summer Loads & Resources Assessment.  Just a couple days prior to the CAISO's report was the California Public Utilities Commission (CPUC) putting out their Aliso Canyon Risk Assessment Technical Report Summer 2018.  In general these reports ... » read more
Friday Jun 1, 2018   
While Memorial Day weekend was near perfect temperatures here in the Pacific Northwest, the same cannot be said about our neighbors in the Midwest. A heat wave swept through the Central US just in time for the holiday which made any BBQ plans significantly less comfortable. Highs reached up into the mid-90's for South Dakota and Wisconsin while parts of Minnesota triple digits. Looking at the chart below, we can see a white (pinkish) hot cloud covering a majority of the Midwest. Figure 1 | ConUS Temperature Anomaly Memorial Day 5/28/2018 Moving over to the power market, the heat had a significant impact on power loads across the MISO footprint; therefore the zonal pricing was of interest as the auction cleared. The unassuming state of Minnesota usually falls as one of ... » read more
Thursday May 31, 2018   
Earlier in the month was the first leg of the triple crown, known as the Kentucky Derby.  This traditional horse race weekend ranks right up there with the top sporting events that should be included on your bucket list of events to attend.  The weekend would be more enjoyable if you were to bet on the race itself with a trifecta bet as it usually pays out well. The Trifecta bet is when you pick the top three finishers in a specific race in the correct order.  The winning ticket holders are seen celebrating as they go and cash in their prize. Figure 1 | The Trifecta Winner If you do not care about the order in which the three horses place in a specific race, you can make a bet called the Trifecta Box, which has a different payout structure as you are just trying to note ... » read more
View more [ 1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  61  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  77  78  79  80  81  82  83  84  85  86  87  88  89  90  91  92  93  94  95  96  97  98  99  100  101  102  103  104  105  106  107  108  109  110  111  112 ]