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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After pausing operation for its 24th refueling, Energy Northwest’s Columbia Generating Station nuclear plant began ramping up again in the early morning hours of June 21.
