Scarce

Almost the entire cash market fell Tuesday as heating load remained scarce despite a snowstorm that will be bearing down on the central Plains Wednesday. Only a nickel rise by Questar prevented across the board losses.

Although air conditioning load in the South will slacken Friday under a widespread set of thunderstorms and weather-related demand remains scarce elsewhere, cash prices made it a solid four-for-four days of bullish performance so far this week Thursday.

Although a few scattered points in the Gulf Coast and Northeast were able to make small gains Wednesday, the rest of the cash market bowed to modest heating load and the previous day’s futures weakness in recording quotes that ranged from flat to down a little more than 30 cents. Most of the larger losses were concentrated in the West, where seasonable temperatures dominated despite cold and snowy mountainous areas.

Although a few scattered points in the Gulf Coast and Northeast were able to make small gains Wednesday, the rest of the cash market bowed to modest heating load and the previous day’s futures weakness in recording quotes that ranged from flat to down a little more than 30 cents. Most of the larger losses were concentrated in the West, where seasonable temperatures dominated despite cold and snowy mountainous areas.

Market factors, including increased costs for natural gas and NOx credits, increased demand, scarce resources and unusually high temperatures throughout the West, coupled with flawed market design and regulatory policies, and possibly some exercise of market power were responsible for the high power prices in California this past summer, according to the FERC staff report on bulk power markets released last week.

Market factors, including increased costs for natural gas andNOx credits, increased demand, scarce resources and unusually hightemperatures throughout the West, coupled with flawed market designand regulatory policies, and possibly some exercise of market powerwere responsible for the high power prices in California this pastsummer, according to the FERC staff report on bulk power marketsreleased yesterday.