Outages, hydro, wildfires set to shape California markets this summer

摘要

A complex combination of factors is expected to impactCalifornia gas and power prices this summer, with gas systemconstraints and wildfires potentially boosting prices in both markets,and in-state hydropower likely moderating power prices and helpingmeet peak demand in the state.On the gas side, recent increases in Southern California Gas’ gasstorage levels have eased market concerns over summer gas prices.Still, existing system constraints could significantly affect prices.Forwards prices for July and August were assessed Monday in themid-$5/MMBtu range, after trading in the mid-$6s/MMBtu earlier thisyear, S&P Global Platts data shows.