PJM Tracker: Power prices follow lower gas prices despite colder weather

摘要

PJM Interconnection wholesale power prices dropped an average of 11.2% year on year in October, following lower power demand and weaker spot gas prices, and not correlating with colder weather that normally drives up prices. In addition, power forwards followed lower gas forwards with on above-normal weather expected in the coming months. Peakload averaged 83.967 GW in October, down 4.6% year on year and a decrease of 14% month on month, according to PJM data. Average temperatures across the PJM footprint in October were 3% lower year on year leading to 13% more heating-degree days compared to a year ago, according to S&P Global Platts Analytics data. Pulling down power prices, TETCO M-3 spot gas averaged $1.216/ MMBtu in October, down 18.5% year on year, according to S&P Global Platts pricing data.