Widespread public power shut-offs are being credited with pushing California natural gas prices higher in the Oct. 3 through Oct. 10 trading period.
The first of October marked the beginning of a new water year that is kicking off with "significantly more water in storage" than in the prior water year, according to the California Department of Water Resources.
While California Independent System Operator demand dropped in the Sept. 19 to Sept. 26 trading period, California power prices posted gains by week's end.
Pipeline constraints and reduced storage at Aliso Canyon, coupled with current inventory levels that are less than 2018's, prompted California Public Utilities Commission Executive Director Alice Stebbins to ask Southern California Gas Co. to "take immediate action" to prevent reliability pr…
With the departure of warmer-than-normal temperatures across the West, regional energy prices deflated over the trading week.
Warmer-than-normal Western temperatures lent support to regional power and natural gas prices, with most hubs posting gains.
Natural gas prices at three California hubs moved above the $3/MMBtu mark as withdrawals were made from regional storage facilities.
Searing, record heat across the western U.S. didn’t translate into higher power demand or prices throughout the week. As temperatures climbed, peak power prices across the West dropped between $6 and as much as $16.10 between Aug. 15 and Aug. 22.
Peak power prices across the West picked up between $4 and as much as $18.25 in trading this week, a portion of which can be attributed to greater California demand and extreme heat across the Southwest.
California natural gas prices are “among the highest” in the continental U.S. this summer, according to the U.S. Energy Information Administration.
Western energy prices decreased through the trading week on lower electricity demand.
California peak power price increases paralleled higher demand throughout the week, with values climbing more than $20 in trading.
The amount of natural gas used across the United States to meet power demand reached an all-time high of 43.8 Bcf per day July 17.
There was “some price volatility” associated with a series of Southern California earthquakes and aftershocks that occurred over the Fourth of July weekend, the U.S. Energy Information Administration said, but Southern California gas transmission and distribution systems were largely unaffected.
Power prices throughout the West were relatively tame heading into the Fourth of July, with prices generally unchanged over two or three days.
The Aliso Canyon natural gas storage facility is at its full authorized capacity and California natural gas prices appeared to respond, with prices softening in trading.
Power/gas prices courtesy of Enerfax
Source: BPA & CAISO
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