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June 29, 2023
July 2023 natural gas prices surged 8% on 6/23. On Wednesday, prices saw a trade range from $2.84-$2.69/MMBTU as it was expected to expire.
NOAA has revised its 8-14 temp outlook concentrating extreme heat only to southern Texas as it deals with record temps in the past two weeks. The rest of the country is expected to have mild temps for the same period. Electricity prices responded by dropping $1.75/MWh for Jul 2023 in PJM.
The Mountain Valley Pipeline has the necessary regulatory approvals to move forward in delivering natural gas to Transco Zone 5 in the Carolinas. They are expected to begin service at the end of the year supplying 2 BCF/day.
The short-lived mutiny in Russia barely moved energy prices. This can be attributed to a continued over supply and waning demand of struggling economies.
NYISO Chooses Transmission Project for 3 GW Offshore Wind Transfer from Long Island
The New York Power Authority and New York Transco announced on June 21st that their transmission project was chosen by the New York Independent System Operator (NYISO) to deliver a minimum of 3,000 MW of offshore wind power from Long Island to the rest of the state by 2030. The project, named Propel NY Energy, involves the construction of a 90-mile electric power line. It was selected by NYISO's board of directors in response to the Long Island Offshore Wind Export Public Policy Transmission Need Project Solicitation. The goal of Propel NY Energy is to enhance the state's electric grid by increasing transmission capacity and integrating more clean, renewable energy from offshore wind farms into the statewide grid. The project will utilize underground and submarine transmission lines in existing public rights-of-way and substation facilities in Long Island, New York City, and Westchester County. Its implementation will contribute to New York's clean energy objectives, including the installation of 9,000 MW of offshore wind power capacity by 2035. Justin Driscoll, NYPA's acting president and CEO, expressed his satisfaction with the project's selection, emphasizing its positive impact on the electric grid and the delivery of clean energy to New Yorkers.
Experts discuss changes to New England power market
Opinions are divided on whether New England's grid operator should transition from a three-year forward capacity auction system to a more immediate procurement approach for power supplies. The reliability of the region's grid has become a persistent concern as ISO New England manages the interdependencies between the natural gas and power sectors. Recent grid emergencies were primarily caused by unplanned generation losses, with gas-fired units contributing to most of the outages. A prompt market, which procures capacity for the upcoming delivery year, is being considered as a potential solution. However, there are concerns about fuel procurement and the potential for reliability must-run contracts for retiring generators. Experts emphasize the trade-offs involved in adopting a prompt market approach and express reservations about potential risks to reliability and the generation market. ISO-NE is evaluating whether to pursue a prompt or seasonal approach or a combination of both and plans to file proposed resource capacity accreditation rules with FERC by the end of the year. The implementation timeline for a prompt market design is estimated to be around 18 months.