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Archive for the ‘Market Monitoring’ Category

Development of a Bullish 2021 Natural Gas Price Environment

Reduced drilling activity and capital expenditures (CAPEX) cuts by oil and natural gas producers present a strong risk of higher natural gas and, subsequently, electricity prices in the coming years. In 2020, mild winter weather and record natural gas production levels have dragged natural gas prices to 25-year lows. Also, oil prices have collapsed to […]

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ERCOT Reserve Margins – Forward Outlook

ERCOT projects reserve margins to be 10-18% over the next five years with the improvement between Summer 2020 and Summer 2021 primarily attributed to the near 5,000 MW of solar capacity and 700 MW of new wind capacity expected to come online.

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ERCOT Electricity – Natural Gas Correlation Widening

Many electricity markets follow natural gas markets as the majority of the generation is fueled by natural gas, and those gas generators set the price of power as often as 80% of the time. However, as energy markets evolve, this historically tight correlation has broken in some regions, namely ERCOT.

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Texas Rate Cases 2019

CenterPoint Energy On April 5th, CenterPoint Energy filed an electric delivery rate increase request with the Public Utility Commission (PUC) of Texas. The requested adjustments would address a higher equity ratio and higher cost of equity for CenterPoint Houston, the Tax Cut and Jobs Act of 2017 that has significantly reduced the company’s cash flow. […]

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U.K. Triads Winter 2018/2019

The U.K. natural gas markets went into winter with significant risks due to the lack of long term storage increasing the need to supplement with potentially volatile LNG imports. Electricity markets were further at risk due to increased intermittent renewable generation. Seasonal baseload electricity and NBP prices pushed up ~50% between April and September 2018 […]

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Market Monitor – PG&E files Notice of Intention to declare Bankruptcy

January 14, 2019: Pacific Gas and Electric, California’s largest investor-owned utility, filed an official 15-day notice that it intends to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29th. A bankruptcy filing by PG&E will have a limited impact on our customers as the utility will likely […]

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