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Tuesday Jul 13, 2021   
California has had a bad run of luck this year. The lack of rainfall and snowpack has left the state high and dry for hydro power resources. The output is approximately one third of normal which is causing the natural gas thermal generation throughout the state to make up for the difference. But this has not deterred SoCal Gas from filling its storage caverns. The utility raced ahead with injections all spring taking the inventory to just a couple of BCF from full. This is seen as a positive for a system that will have to make up for the shortfall in hydro generation. But as storage fills to the top the system flexibility falls. The ability to inject is a buffer against high inventory conditions. That was expected to be the operating condition until this week's forest fires in Oregon ... » read more
Monday Jul 12, 2021   
The West heat has been getting all the press as late given the fact that the likes of Boise, Spokane and now Western Canada are seeing continued record breaking highs and it is only July.  As we move down south, the likes of Death Valley and parts of Nevada and Arizona are feeling the sweltering heat with records breaking as well.  Such heat has wreaked havoc within the water sector as conservation has been the main theme the past couple of months given that there is not enough to go around for agriculture, consumption within cities and for the electricity hydro system.  We have all seen pictures of lakes across the region, including Lake Mead, Folsom Lake and Oroville's lake that sits behind the dam. Figure 1 | Lake Mead's Water Level With the heat conversation and it ... » read more
Friday Jul 9, 2021   
The western US is facing the tightest market conditions in twenty years. Last week the CAISO put forth its call for additional RA capacity under its emergency authority. The Northwest experienced searing heat and record-breaking temperatures. The CAISO RA program has significant flaws. The non-CAISO WECC has no RA program in place at all. The Northwest Power Pool has been working on an RA program that appears to both have a good chance of getting off the ground and largely hits the mark in terms of preliminary design features. In May, the Power Pool released a document summarizing the work done so far and the path forward. https://www.nwpp.org/private-media/documents/NWPP_Public_Webinar_051421_V16.pdf On August 3rd the Power Pool is hold an “RA Symposium” where they will ... » read more
Thursday Jul 8, 2021   
The Western power markets have been front and center for some time as the Desert Southwest has led the charge.  This all stemmed from last summer when the California market ran into a little bit of trouble balancing their grid on a Friday evening in the middle of August (2020).  The result was for CAISO to have its first energy-related rolling blackout in two decades up in Northern California.  As the weekend passed, the scramble was on to make sure there were enough megawatts available to the system operators so that the situation would not occur in the immediate future as temperatures were still rising.  The following Monday saw the market explode in the Desert Southwest as CAISO came out with the verbiage that they were cutting exports which meant that the Desert ... » read more
Wednesday Jul 7, 2021   
It is difficult to recall a time when the AECO summer gas prices have been as strong as they are now.  The AECO price is drawing extraordinary support from burgeoning demand driven by structural changes as well as temporal ones from a record-hot summer; strong exports to Eastern Canada and the U.S.; and the need to replenish depleted storage inventories.  Amid the strong demand, the supply-side is hamstrung from growing due to summer’s long maintenance on the primary gathering pipeline networks.  This is not just buoying the AECO cash market, but has led to a notably slow storage refill rate that is, in turn, radiating price strength well into the winter strip with minimal signs of abating.  Alberta supply is flatlined for the summer.  Gas production is de ... » read more
Tuesday Jul 6, 2021   
The 4th of July in Portland came and went without any real large bangs as the city banned the use of fireworks given the dry conditions that have been plagued the region so far in 2021.  This is the second year that the sky has not been filled with the massive displays as the pandemic crushed the crowd gathering events that once were in play for everyone to see and enjoy. Figure 1 | Fireworks Ban across the Pacific Northwest When it comes to the energy sector, there has not been any such ban this past year in the West as the last August's California rolling blackouts ignited a frenzy that started with massive displays of upward trending Palo Verde on-peak movements.  Each event from that point forward seemed to bring with it an even bigger fireworks display as scarcity due to ... » read more
Friday Jul 2, 2021   
All the news headlines have been on the heat dome that formed over the Pacific Northwest this past week, which was warranted as temperatures hit 116 degrees in Portland, Oregon and continue to hit triple digits in Western Canada, Montana, Idaho and parts of Eastern Washington.  While all this was going on, the East region of the United States was percolating its summer weather coffee pot as the daytime highs were reaching for its own triple digits.  The heat dome that resides in the East during this time of year includes the element known as humidity, which is additive to the uncomfortable feeling where cooling demand moves to the forefront of the conversation throughtout PJM, NYISO and ISONE.  Today's blog focuses in on the power demand in NYISO as the end of June saw ... » read more
Thursday Jul 1, 2021   
The month of June 2021 was one for the ages if you sat in the Pacific Northwest as Mother Nature delivered two heat waves one of which provided a heat dome that pushed temperatures up to 116 degrees in Portland, Oregon and 104 degrees around Seattle, Washington.  Both cities were on a trend of consecutive days breaking records not only the month of June but for the month of July it it were to happen today.  At the end of the day, the heat bubble was tramatic and it was all hands on deck when it came to making sure individuals and pets were safe from what Mother Nature delivered.  The other parts of the West were hot but nothing like what we saw in the region described. Figure 1 | Heat Wave for the Ages The chart above is very colorful in nature with the darkest red shade ... » read more
Wednesday Jun 30, 2021   
This week has been one for the AESO record-books, and, yet, there’s more to come. The same heat dome that canvassed the U.S. Pacific Northwest with all-time record-high temperatures has made its way into Alberta.  The AESO has established new June and summer peak-hour load highs, and may even set all-time records due to the trifecta of record heat, a demand recovery from COVID, and ongoing structural demand growth influences.  With the province’s wind sitting this event out, the net effect of these factors has propelled the Alberta Power Pool (APP) real-time price up to the province’s regulated max over a decent-sized block of hours. This past Monday afternoon, as temperatures in Calgary went flying past the 90˚F threshold, hourly power loads climbed to a peak ... » read more
Tuesday Jun 29, 2021   
The focus of the news over the past week has been the record temperatures in the Pacific Northwest. Portland hit 115 degrees on Sunday which was hotter than Phoenix and Las Vegas. The heat dome looks to be breaking as of this morning but the above normal bias is in place until further notice. Over on the East Coast they are experiencing their own heat wave that started this weekend when temperatures throughout the Mid Atlantic posted 1-5 degrees over forecast with daytime highs pushing into the low 90's. With high humidity the heat index moved into the mid 90's. The bigger issue was that overnight lows never got below 65 degrees forcing cooling demand to run around the clock.  Figure 1 | Philadelphia High/Low Temperatures for May-June 2021  The warmer temperatures over the ... » read more
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