With the exception of hefty double-digit upticks at California points, the rest of the cash market was mostly an array of flatness mixed with small increases and decreases Tuesday. Expectations of another large storage injection figure this afternoon and the approach of cooldowns in key market areas such as the Northeast had several sources looking for general softness today.
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Articles from Points
FERC Stands by Creditworthiness Element of CA Mitigation
FERC is refusing to budge on several key points included in a market monitoring and mitigation plan for California’s sagging energy markets that was unveiled in April. The Federal Energy Regulatory Commission re-emphasized its belief that it is important for the California Independent System Operator (Cal-ISO) to ensure the presence of a creditworthy buyer for all transactions made with any generator that offers power in compliance with the rules set forth in the mitigation plan.
Bullishness Continues, But Staying Power in Doubt
The cash market remained on its uphill trek at all points Wednesday except for the OFO-devastated PG&E citygate, but price increases continued to get smaller than those earlier in the week. A substantial majority of upticks were between 10 and 20 cents.
FERC Offers Additional Guidance On CA Mitigation Order
Seeking to flesh out several key points of a sweeping market monitoring and mitigation plan for California’s ailing energy markets, FERC recently said that it expects California’s Independent System Operator (Cal-ISO) to ensure the presence of a creditworthy buyer for all transactions made with any generator that offers power in compliance with a must-offer requirement included in the monitoring and mitigation plan.
FERC Offers Additional Guidance On CA Mitigation Order
Seeking to flesh out several key points of a sweeping market monitoring and mitigation plan for California’s ailing energy markets, FERC last week said that it expects California’s Independent System Operator (Cal-ISO) to ensure the presence of a creditworthy buyer for all transactions made with any generator that offers power in compliance with a must-offer requirement included in the monitoring and mitigation plan.
Weather Is Key to Eastern Softness, Western Strength
Virtually all eastern points, along with the Permian Basin/Waha market, yielded to weak weather fundamentals and expectations of another large advance in storage injections by dropping about a dime or slightly more Tuesday. However, a spreading West Coast heat wave kept Rockies/San Juan/Pacific Northwest numbers and those related to the Northern California market strongly on the rise.
Prices Level Out for Most of Non-Western Market
Somewhat surprisingly, most points outside of California and the Rockies/Southwest basins were able Wednesday to pull out of the price tailspin that had dominated this week’s market. Flat to mildly higher or lower numbers were prevalent in most areas. However, California continued to plunge in triple-digit amounts except for border-SoCalGas quotes, which fell only about 30 cents. The Rockies and Southwest basins generally were down from about a nickel to 20 cents.
Transportation Notes
Sonat said Monday it had completed temporary repairs to its Logansport, LA facilities. Gas flow was resumed for 59 upstream receipt points in the Logansport and Joaquin Fields that had been shut in by the work Saturday (see Daily GPI, April 23). Further evaluation is being done to develop a permanent repair plan, Sonat said.
East Flat; SoCal Border Major Exception to Softer West
Prices leveled off Tuesday in the East with few points varyingby more than a couple of cents in either direction from flat.Western markets generally were softer except for flat numbers inthe Pacific Northwest and a gain of more than a dollar at theSouthern California border. The Golden State’s power situationremained dire enough that a second straight day of rollingblackouts was ordered (see related story).
Mild Firmness Marks Most of Weekend Market
A quiet market week showed no inclination for change going intothe weekend. Most points ranged from flat to up a dime, but only afew rose more than a nickel or so. Major departures from theoverall market trend were (where else?) in California, where Malinpushed nearly a dollar higher while the border and PG&Ecitygate slipped about 35-40 cents each.