Heavier loads combined with substantially weaker wind generation
to boost average real-time prices from June to July in the
Midcontinent Independent System Operator's footprint, according to a
MISO report.
Average real-time locational marginal prices rose to $31.07/MWh in
July from $28.13/MWh in June, while total cleared physical energy
rose to 64.5 TWh in July from 57.9 TWh in June, MISO's Market and
Operations Report shows. Posted to the MISO website Thursday, the
report is to be presented by Todd Ramey, MISO's vice president for
system operations, at the system operator's monthly MISO
Informational Forum on August 22.
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"Energy prices were comparable to last July," Ramey said in his
presentation. "Energy prices were consistent with both load level
and stable natural gas prices, which remained below $3/MMBtu. Forced
generation outages decreased about 3 GW from last July, while
planned outages increased by 1 GW."
Wind energy, which typically tapers off in July and August,
dropped to less than 2.3 TWh in July from almost 3.8 TWh in June. In
July 2016, wind contributed about 2.5 TWh to the MISO energy supply.
This July's average real-time LMPs were also about 4.5% higher than
July 2016's average of $29.73/MWh, but this July's total cleared
physical energy was about 1.4% less than July 2016's 65.4 TWh.
The year-over-year increase in power prices may be more related to
natural gas prices, which averaged $2.96/MMBtu this July, almost
flat with June's average of $2.94/MMBtu, but 6.1% higher than July
2016's average of $2.79/MMBtu.
The MISO Louisiana Hub had the highest real-time on-peak average
LMP, at $45.77/MWh, up from $37.44/MWh in June and $40.56/MWh in
July 2016.
The wind-heavy Minnesota Hub had the lowest real-time on-peak
average LMP, at $34.02/MWh, up from $26.70/MWh in June and
$32.01/MWh in July 2016.
--Mark Watson,
Markham.watson@spglobal.com
--Edited by Richard Rubin,
richard.rubin@spglobal.com
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