3 min read

Fixed Price Buyers Beware…

By 5 on August 27, 2020

Over the last month, near-term electricity prices in New York have risen while longer-term prices have fallen. Figure 1 shows how the price of a one-year strip of electricity has traded since January 2019 for calendar years 2021 through 2025 in New York City.  Note how prices in the near-term, 2021 (blue line) and 2022 (black line), have been rising over the last several weeks after hitting lows earlier this year in April and July.  Longer term prices for calendar years 2024 (yellow line) and 2025 (red line) have been falling since the middle of July.  It is important to note, however, that despite these recent market movements, overall prices across all calendar years are trading at or near their 4-year lows.   

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Topics: Markets NYISO
2 min read

How Not to Buy in PJM and NYISO

By 5 on August 27, 2020

The coronavirus has not only significantly reduced electricity usage and peak demand across the NYISO and PJM regions, it has also dramatically changed how retail electricity suppliers approach fixed price electricity offers to clients. In order for suppliers to generate fixed price offers, they first gather and review the previous 12 months of historic usage data, including the volume of electricity consumed (MWhs) and the peak demand (MWs).

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Topics: Markets PJM NYISO
1 min read

Coincident Peak Alert for NYISO and PJM, August 10, 2020

By 5 on August 10, 2020

PJM:

Temperatures throughout the northeastern U.S. are expected to approach or exceed 90°F this afternoon, driving electric demand close to 2020 summer highs.

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Topics: Markets PJM NYISO
2 min read

The Clock is Ticking for Local Law 33/95

By 5 on July 30, 2020

New York City’s Local Law 33/95 will require building owners to post their Energy Efficiency Rating Label in the next 90 days. In December 2017, the New York City Council passed Local Law 33/95, requiring building owners to post this label in a conspicuous location near each public entrance. This is required for all buildings over 25,000 square feet that are listed on the 2020 Covered Buildings List for benchmarking compliance. The intent of this law is to provide transparency into a building’s energy usage and efficiency.

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Topics: Markets NYISO
2 min read

Coincident Peak Alert for NYISO and PJM, July 27-31, 2020

By 5 on July 27, 2020

NYISO:

Temperatures in New York City are expected to remain in the mid-90s throughout Monday. Even though precipitation is likely in the 7-10 day range, it is expected that Monday (7/27) will approach the year-to-date system peak of 29,979 MW which was set last Monday (7/20).

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Topics: Markets PJM NYISO
2 min read

Coincident Peak Alert for ERCOT, NYISO and PJM, July 20 - 24, 2020

By 5 on July 20, 2020

High pressure system has settled over the Midwest and Mid-Atlantic that will keep temperature elevated today and tomorrow. These high temperatures will result in PJM and NYISO electric grids being pushed to the max. In NYISO, peak load of more than 29,933 MW is expected beginning 4:00 PM today. Between 3-5 PM, load is forecast at or above 29,700 MW, vs the current 2020 peak of 28,867 MW.

It’s important to note that load this morning is coming in ~600 MW higher than yesterday’s projections, which reflects how warm it is in the New York region today. Temperatures in New York City are expected to exceed 95 degrees. 

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Topics: Markets PJM NYISO ERCOT
1 min read

Coincident Peak Alert for NYISO, PJM, and ERCOT, July 2 - 13, 2020

By 5 on July 2, 2020

It appears the fireworks have come early this year as several markets are facing medium to high threats for Coincident Peaks (“CPs”) today and into the early part of next week.

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Topics: Markets PJM NYISO ERCOT
3 min read

Current Capacity and Alternative Product Structures

By 5 on June 24, 2020

A fixed price electricity contract is the most common product selected by commercial clients throughout the deregulated markets in the US. And while the cost of the energy (the electrons moving through the wires) is the often the largest and most volatile part of a retail electricity price, there are several other electricity cost components that are built into that retail price.

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Topics: Markets NYISO Education
3 min read

Lowest Spot Power Prices in a Decade in NYC

By 5 on May 27, 2020

May 2020 it is likely to be the 5th month in a row where Real-Time LMP (spot) prices in New York City (NYISO Zone J) have settled at their lowest levels in ten years. Figure 1 shows the monthly settlement price in Zone J from 2011 to 2020. Note that the first five months of 2020, shown in the dark green line, are less than all other monthly settlement prices. 

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Topics: Markets NYISO
4 min read

Good News and Bad News for New York Electricity Clients

By 5 on April 22, 2020

There is often both good and bad news anytime commodity markets are volatile.

The bad news:

Earlier this month, the NYISO  (the entity in charge of economically maintaining the electricity system in New York) completed the first two of three capacity auctions that ultimately set the price paid for capacity in the coming summer months (May – Oct 2020).  Many were anticipating higher summer capacity prices (especially in New York City) from this month’s auction given how high forward capacity prices have been.  Historical capacity prices for New York City and the rest of New York State are shown in Figure 1. 

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Topics: Markets NYISO