Capacity prices under pressure in NYISO: UBS

摘要

New York City’s 2016 summer capacity prices should experience downsidernpressure resulting from a falling local capacity requirement while prices inrnthe rest of the state have the potential to climb, UBS said Friday.rnIt has lowered its forecast to about $10/kW-month from itsrnprevious estimate of $15.50/kW-month for summer 2016, evenrnincluding the 150 MW that NRG will mothball at its Astoria plant. UBS’srnestimate is $10/kW-month for the summer of 2017 and $11/kW-monthrnfor the summer of 2018.rn“Among the biggest changes set to take place are shifts in the localrncapacity requirement. While a small detail in the planning parameters,rnthese can have a major impact on the clearing price of a capacity region,”rnJulien Dumoulin-Smith, a UBS analyst, said Friday in a report.