In this July report, we analyze the recently released data from May, which reveals significant developments in the energy market. Wholesale daily electricity and natural gas prices hit 12-month lows across various locations during May. Notably, new 12-month low wholesale electricity prices were recorded in New England (ISONE) at $21/MWh, New York State (NYISO) at $24/MWh, Louisiana (Entergy) at $18/MWh, the Southwest (Palo Verde) at $4.50/MWh, Southern California (CAISO) at $1.47/MWh, and Northern California (CAISO) at $0.87/MWh. Similarly, wholesale natural gas prices reached new 12-month lows in several trading hubs, including Louisiana (Henry Hub) at $1.85/MMBtu, the Southwest (El Paso San Juan) at $1.26/MMBtu, Southern California (SoCal Border) at $1.50/MMBtu, Northern California (PG&E Citygate) at $2.80/MMBtu, and the Northwest (Sumas) at $0.51/MMBtu.
During this period, electricity demand saw new 12-month lows in New England (ISONE) with a drop to 11,862 MW on May 6 and in New York State (NYISO) with demand reaching only 15,205 MW on the same day. Demand was also notably low in the Mid-Atlantic (PJM) and California (CAISO), though no new 12-month lows were set in these regions. However, demand showed some higher levels on the Southern Company system, Midwest (MISO) system, and Texas (ERCOT) system on specific dates in May.
The information provided in this market insight is for general informational purposes and should not be considered as financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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