On 4/12/12, the (PUCT) voted 2-1 to move forward with a proposal that would allow wholesale prices to climb to $4,500/MWh when supplies are tight, up from the current $3,000 price cap. This change will be effective from 8/1/2012 to 5/31/2013. None of the three commissioners disagreed on the need to raise wholesale prices during times of supply scarcity, only the timing and the method.
Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas
Forward heat rates in ERCOT have increased as a result of actions taken by the Public Utility Commission of Texas (PUCT).
Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas
The supply overhang keeps pressuring NG futures lower, and there is greater market consensus that an additional 20%-30% drop is not out of the realm of possibilities.
Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Weekly Energy Insights, natural gas
Natural gas storage is currently at 60% of capacity, and stockpiles will continue to increase through spring. Currently, the natural gas price action has been dictated by technical indicators; however, as we get more information from the inventory expansion rate, fundamentals should push prices lower.
Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Weekly Energy Insights, natural gas
