Smartest Insight | Issue 124
Our weekly company round-up covers the key market and industry news in one place, so you don’t have to look any further to stay ahead.
June 23, 2023
Market Update:
NG storage report for WE 6/9 was a miss at +84 BCF. This start of the week was volatile with fears of another lower than expected build. For WE 6/16, storage was reported at +95 BCF. This is 27% above last year and 15% above the 5-yr avg and in line with expectations prompting a market decrease of 5% across the board. Prompt is trading at $2.55/MMBTU and down from highs of $2.69/MMBTU on 6/20/23. The milder temp forecast is adding downward pressure. Volatility continues as we head into hot temps. Maintenance driven production cuts can be an issue.
FERC has approved PJM's delay of the capacity aucton through PY 2029/30. The BRAs will occur as follows:
PY 25/26-Jun 2024
PY 26/27 Dec 2024
PY 27/28 Jun 2025
PY 28/29 Dec 2025
PY 29/30 May 2026
ISONE and FERC met for the Electric and Gas forum on 6/20/23. Takeaways: Mystic will retire in May 2024; Everett has a high change of also retiring at the same time. ISONE expects to have enough solar growth, new offshore wind and increased transmission import capability.
Regulatory Report:
States in the Northeast US look to from Collaborative
Eight states in the Northeast and New England regions of the United States have joined forces to seek assistance from the Department of Energy (DOE) in expanding their electric power connections. The states, including New York, New Jersey, Connecticut, and others, have requested the formation of a Northeast States Collaborative on Interregional Transmission. They want the DOE to provide technical expertise to explore opportunities for increased interconnectivity, particularly for offshore wind projects. The proposed collaborative would be led by the DOE and involve the participation of the three grid operators in the regions, as well as potential involvement from other states and Canadian representatives in the future. This initiative aligns with ongoing efforts by the DOE, Federal Energy Regulatory Commission, and Congress to support interregional transmission planning. The states believe that enhancing power ties between their regions is crucial for improving system reliability and accelerating the transition to clean energy, without having to wait for new regulatory mandates.
Appropriations target Biden’s Clean Energy Programs
Republican leaders on the US House Committee on Appropriations have released spending legislation for the upcoming fiscal year, aiming to cut funding for the Biden administration's clean energy programs. The proposed bills would reduce clean energy programs and withdraw funds from the Department of Energy and the Department of Agriculture. The legislation follows President Joe Biden signing a debt ceiling bill that limits nondefense spending in line with the previous year. The Federal Energy Regulatory Commission's budget would remain at $520 million, while the Commodity Futures Trading Commission's budget would decrease to $345 million. The energy appropriations subcommittee approved a spending bill for energy and water development, which includes a reduction in funding for the DOE's Office of Energy Efficiency and Renewable Energy. The Office of Clean Energy Demonstrations would also receive less funding. The bills would rescind funding for rebates, energy codes adoption, worker training, and loan guarantee programs related to clean energy and climate initiatives. The future of the legislation is uncertain as the Democrat-controlled Senate is likely to oppose it. Critics argue that cutting funding for these programs undermines rural communities and their investments in clean energy infrastructure.