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U.S. power and natgas prices soar during spring heatwave

Commodities May 19, 2022 12:31PM ET
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© Reuters. A local resident walks by the power grid towers at Bair Island State Marine Park in Redwood City, California, United States, January 26, 2022. REUTERS/Carlos Barria

(Reuters) -U.S. spot power and natural gas prices soared on Thursday to their highest a year or more in several parts of the country as consumers cranked up air conditioners to escape an early spring heatwave.

Even before the latest heat, gas futures were trading near a 13-year high as much higher prices in Europe and Asia kept demand for U.S. liquefied natural gas exports strong, especially since Russia's Feb. 24 invasion of Ukraine. [NGA/]

In Pennsylvania, next-day power at the PJM West hub and gas at the Dominion South hub rose to their highest since the February freeze in 2021.

AccuWeather forecast high temperatures in Philadelphia would jump from 79 Fahrenheit (26.1 Celsius) on Thursday to 87 on Friday and 95 on Saturday. The city's normal high is 75.

In Texas, the Electric Reliability Council of Texas (ERCOT), which operates the grid for most of the state, forecast demand would peak at a monthly record on Thursday.

ERCOT said the grid had enough resources to meet demand.

At the start of the current heatwave, however, ERCOT was forced to urge conservation on May 13 after several power plants shut unexpectedly, causing real-time prices to soar over $4,000 per megawatt hour (MWh).

AccuWeather said high temperatures in Houston hit the 90s F every day since May 14 and will remain at those levels through Saturday. The city's normal high is 87.

ERCOT forecast demand would hit 72,424 megawatts (MW) on Thursday, topping the current May record of 70,804 MW on Tuesday.

In Louisiana, next-day gas at the Henry Hub benchmark jumped to its highest since hitting a record during the 2021 February freeze.

In Northern California, next-day gas at the PG&E (NYSE:PCG) Citygate rose to its highest since February 2019 for a second day in a row after a compressor failure on May 16 forced Gas Transmission Northwest to limit gas flows from Canada to the Pacific Northwest.

U.S. power and natgas prices soar during spring heatwave
 

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Comments (4)
Rafique Shipon
Rafique Shipon May 19, 2022 10:22PM ET
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Perfectly fake news.
Jeff Bailey
JeffB May 19, 2022 10:22PM ET
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It’s real. Very real. Thanks Joe Biden!
Heine Pedersen
Heine Pedersen May 19, 2022 5:51PM ET
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Heat wave? Anyways.. It's almost a year ago that the word "100$ oil and 10$ gas" became a roumor. Let's see what happens next..
Phong Nguyen
Phong Nguyen May 19, 2022 11:56AM ET
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They have all lind of b s to jack up the price to profits themselves to the max ! So shameful to see the country was and is number one NG producer on the world, always having plenty of NG in storage and export it everywhere and yet, people in the country facing tough time and had to pay decades high price of NG !!! So absurd.
Fabian Romano Chernac
Fabian Romano Chernac May 19, 2022 11:56AM ET
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Move to Cuba
Jeff Bailey
JeffB May 19, 2022 11:56AM ET
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Biden promised Americans he would bring the country down to the rest of the world’s level. Energy prices rising is just a part of that promise.
Empire Destroyer
Empire Destroyer May 19, 2022 9:22AM ET
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It's soaring because the dudes in power want to make people poorer when they need cooling/heating the most...
 
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