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Weak power prices put squeeze on coal generation

SNL -- Amid falling natural gas prices, power prices have become less sensitive to load. And as mild weather tempered demand, January average power prices in regions that rely more heavily on gas fired generation saw the largest year-on-year declines. But the soft power market isn't bad news for all generators.

At 11.3 million MW, ISO New England saw a 4.7% year-on-year decline in electric demand in January 2012. During the same period, NYISO demand declined 3.1% to 13.7 million MW. Reduced load and lower natural gas prices made both on-peak and off-peak power prices much lower and much less volatile in the Northeast year-on-year, according to the SNL Energy Commodities Market Month.

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Submitted Feb 06, 2012 By: bar1035

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Mothus Veteran Author Atlanta Posts:380 Points:182,130 Joined:Oct 2011	Message Posted: Feb 6, 2012 6:11:53 PM Ignore Mothus Report Abuse ok
kx250 Champion Author Michigan Posts:1,391 Points:765,750 Joined:Oct 2008	Message Posted: Feb 6, 2012 10:25:42 AM Ignore kx250 Report Abuse It's not like you can just change 50% of your total base generation overnight from coal to gas, and if you have spare nat gas capacity, logic says you will utilize a lower cost method at the expense of the higher cost one.
Norm10 Champion Author British Columbia Posts:1,818 Points:89,095 Joined:Dec 2010	Message Posted: Feb 6, 2012 9:05:56 AM Ignore Norm10 Report Abuse This is good news.
Joeski1 Champion Author New Jersey Posts:7,435 Points:1,375,785 Joined:Dec 2004	Message Posted: Feb 6, 2012 8:11:41 AM Ignore Joeski1 Report Abuse no tears here.... my eyes tear mostly from smog and particulate in the air.
dgerst Champion Author South Carolina Posts:1,010 Points:218,605 Joined:Aug 2008	Message Posted: Feb 6, 2012 7:29:07 AM Ignore dgerst Report Abuse Power prices have been driven lower in recent years by low natural gas prices, which in many markets set the price of electricity.
uglytom Champion Author Florida Posts:6,174 Points:1,286,865 Joined:Jul 2007	Message Posted: Feb 6, 2012 7:18:29 AM Ignore uglytom Report Abuse The usual!
susansgym Rookie Author Maine Posts:99 Points:79,455 Joined:Dec 2011	Message Posted: Feb 6, 2012 6:43:40 AM Ignore susansgym Report Abuse prices didn't come down