Electric Load Loses Bite, Cash Finishes Softer
After Monday's almost universal double-digit increases, cash
prices were on auto-pilot Tuesday, as they trended down from the
previous day's results. Many traders said Monday's run-up would be
this week's high, pointing to moderating weather and the the
completion of pipeline maintenance projects.
Oppressive heat caused Niagara Mohawk Power Corp., NYSEG and New
Hampshire Gov. Jeanne Shaheen to issue power warnings in addition
to the continuation of yesterday's New England ISO warning. NYSEG
said Monday's peak electric demand was 28,378 MW, just 222 MW shy
of the all-time New York state peak of 28,700 set on July 15, 1997.
To make the electricity jam even worse, PP&L Inc. said their
Susquehanna Unit 2 nuclear plant was "unexpectedly shut down"
Tuesday after a transformer problem on the non-nuclear side of the
plant. Officials said the plant will be up "as soon as possible."
Although the Northeast experienced its second day of extreme
heat, price points reversed their direction from Monday's 10 to 18
cent gains. New York Citygate and Tetco M3 prices each fell 7 cents
to the mid $2.60s. One Northeast trader, who heard incremental
deals done at TCO Pool for $2.50, said he stayed away from the
market Tuesday, searching for a better handle on the situation. "We
weren't really active [Tuesday], because we want to see what
happens. I think most of the climbing was done yesterday and that
things will stabilize the rest of the week."
Forecasts calling for rain to enter the Midcontinent later this
week put a damper on the price run-up in Chicago and other Midwest
points, a trader said. Chicago Citygate finished in the high $2.30s
and NGPL Midcontinent averaged in the mid $2.20s. With no major
nuclear outages and the maintenance on Northern Natural ending
tomorrow as scheduled (see Daily GPI, June
8), he is looking for Midcontinent prices to continue lower the
next couple of days.
Tuesday's flat to slightly higher West Coast market should
receive a shake up today, one source said, thanks to the end of a
NOVA system outage, which cut off 1.2 Bcf to AECO since May 31.
"Its a simple supply and demand problem. If your demand stays
constant, and you get a large injection of supply, prices should go
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.