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Archive for the ‘Market Monitoring’ Category

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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Market Monitor – Rising Renewable Energy Certificate (REC) Prices Are Impacting Energy Budgets

Renewable energy certificates (RECs) represent the environmental attributes of renewable generation and are measured and sold per Megawatt-Hour (MWh) of energy produced. Voluntary RECs are those purchased beyond statutory obligation and are often certified under the nationally recognized Green-e program administered by the Center for Resource Solutions. Over the past 24 months, voluntary REC prices […]

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Market Monitor – Winter Storm Uri: Long Term Price Impacts

In the days and weeks following the energy crisis caused by Winter Storm Uri a large number of legislative measures seeking to change electricity market rules were introduced in ERCOT, but added risk of volatility in the market is driving increases in forward prices more than potential rule changes. The highly publicized Senate Bill 2142 […]

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