ERCOT wholesale power futures prices declined in July, with the bulk of losses concentrated in near-dated contracts.
The August 2019 contract at ERCOT North slipped $9.10/MWh (-11.1%) as scarcity concerned faded amid expectations for moderate weather during the traditional heart of the Texan cooling season.
On the whole, the balance of Cal 2019 strip lost $2.41/MWh (-4.5%) versus late June.
Fairly mild summer weather to date has tempered cooling demand and largely prevented price spikes, deflating future risk premiums in the process.
Notably, August 2020 and 2021 contracts are trading at or near $100/MWh—well above the 2019 iteration—suggesting the market is still concerned about very thin reserve margins and the prospect for scarcity events in a warmer weather scenario.
Future hot weather could still trigger major price spikes given limited reserve capacity... A suggestion, when rates are low take advantage of it, as oppose to waiting to see if it goes lower and you miss the opportunity!
Interested in knowing more about strategically procuring your energy... Message me here on Blaqsbi!
The August 2019 contract at ERCOT North slipped $9.10/MWh (-11.1%) as scarcity concerned faded amid expectations for moderate weather during the traditional heart of the Texan cooling season.
On the whole, the balance of Cal 2019 strip lost $2.41/MWh (-4.5%) versus late June.
Fairly mild summer weather to date has tempered cooling demand and largely prevented price spikes, deflating future risk premiums in the process.
Notably, August 2020 and 2021 contracts are trading at or near $100/MWh—well above the 2019 iteration—suggesting the market is still concerned about very thin reserve margins and the prospect for scarcity events in a warmer weather scenario.
Future hot weather could still trigger major price spikes given limited reserve capacity... A suggestion, when rates are low take advantage of it, as oppose to waiting to see if it goes lower and you miss the opportunity!
Interested in knowing more about strategically procuring your energy... Message me here on Blaqsbi!