California, Southwest power dailies rise on higher gas prices, demand

摘要

Higher temperatures, stronger demand and rising natural gas pricesboosted Southern California and Southwest power prices Tuesday.In California, SP15 day-ahead on-peak rose $1.25 Tuesday to tradein the upper $20s/MWh on the Intercontinental Exchange forWednesday delivery, the highest price in three weeks.Spot gas at SoCal city-gate was also on the rise, gaining 18 cents toaverage $2.812/MMBtu for Wednesday flow.Higher demand in the California Independent System operatorfootprint also helped lift SP15 prices. According to the grid operator,Cal ISO peakload is forecast to rise about 8% Wednesday to 35.7 GW.Southwest power prices followed California prices upward, withPalo Verde day-ahead on-peak gaining $1.75 to trade in the low$20s/MWh on ICE.Temperatures across the Desert Southwest are forecast toincrease Wednesday, according to CustomWeather. In Phoenix, hightemperatures are expected to climb from the upper 90s to the low100s, in line with seasonal norms.