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Archive for the ‘Market Monitoring’ Category

Rhode Island RPS Cost Increases Avoidable If You Act Before July 1

The Rhode Island legislature has passed a revision to the state’s Renewable Portfolio Standards (RPS), which significantly increase the required percentage of renewables over the next decade. The revised rules, which are expected to be signed into law by Governor McKee, accelerate the growth rate in RPS requirements from the existing 1.5% increase per year […]

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Market Monitor – Midwest ISO Capacity Costs Rise, Likely To Remain High Beyond 2023

The Midwest Independent System Operator (MISO), who coordinates the electricity grid for many states, including Illinois and Michigan, has announced a sharp increase in capacity costs starting in June of 2022. MISO recently conducted its annual auction to secure capacity resources to meet electricity demand requirements across its system for the June 2022 – May […]

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Market Monitor – Natural Gas Volatility Increasing Electricity Prices

Over the past few weeks, significant price increases in the natural gas market have driven electricity prices higher as natural gas is the largest cost component contributing to the price of electricity in most US electricity markets. Natural gas prices are higher overall due to the fundamentals of limited supply vs. abnormally low gas storage […]

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Market Monitor – New ERCOT Operating Procedures Will Increase Costs

As a result of the grid events caused by Winter Storm Uri in early 2021, ERCOT has altered several ways in which it buys services to ensure system stability. Starting in mid-July ERCOT began buying extra volumes of what are referred to as “ancillary services” including: A. Paying more generators to be ready as “reserve” […]

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Market Monitor – New Illinois Energy Legislation Likely To Increase Utility Costs and Energy Budgets

The new Illinois legislative measure includes several well-publicized components, such as the subsidy for nuclear power and the timelines for closure of coal plants, but it also contained many other items which will impact total electricity costs for all customers. The impacts are concentrated on utility delivery cost components. Customers will not know the actual […]

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Market Monitor – Long-Term Natural Gas Contracts Can Help Mitigate Current High Prices

As we face the current elevated market, longer-term contracts may provide more advantageous rates that can help lower overall costs by mitigating the impact of near-term high prices with lower futures prices. Unprecedented circumstances, including the extreme winter weather that swept most of the country in February, record U.S. gas export levels, and record-breaking summer […]

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Market Monitor – 2022/23 PJM Capacity Auction Results Significantly Lower

PJM has completed the auction for Capacity resources for the June 2022 through May 2023 obligation period and the resulting prices were significantly lower than prior auctions. Although Tradition had forecasted a slight reduction (~10-15%) in clearing prices in the PJM auction for 2022/23 obligation period, the actual results were nearly 50% lower across all […]

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