A continuation of the brutal heat wave across Texas is keeping power prices in ERCOT on the upswing. Monday morning, ERCOT trades for next-day peak hours went through around $450 and off peak trades went through in the upper $20’s.
Triple digit temps and power plant outages caused ERCOT to initiate emergency procedures nearly every day last week. Looking forward, temperatures are expected to be similar with a slight drop of a degree or two by the weekend. Peak loads are forecast to be about 67,000 MW all week long.
In other commodity news, oil prices sank more than $10 a barrel in the last week, closing at $81.31. Trading volumes spiked as the sell-off picked up speed late in the day, triggered by a rapid drop off in stock markets that sent the S&P 500 Index down 6 per cent in the biggest daily drop since late 2008. Crude sold off along with most of the other markets as the U.S. debt downgrade added to the concerns about the U.S. economy and the potential for a double dip recession.
Natural gas closed down $0.006 to $3.935. There is probably limited downside in the gas market at this level as incremental fuel switching from coal to gas-fired power generation kicks in. Additionally, above normal temperatures are forecast to return to the Midwest and Northeast in the 11 to 15 day forecast which should increase the call on gas-fired power generation.
Rising electricity prices might mean a sticker shock on your monthly electricity bill—that is if you haven’t locked in to a low rate yet. At Live Energy, we keep our finger on the market’s pulse—locking in a low rate with the right electricity provider has never been easier. For more information on how we can help you find the right electricity plan for your business, contact one of our certified energy advisors at (877) 810-7770 today.
Commodity Prices ($) as of August 8, 2011