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Market Analysis Report, June 2001

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Summary:

Market Analysis Report for May 2001, Board of Governors Meeting, June 21, 2001

Extract:

Real time electricity and ancillary service prices decreased in May compared to April due to increased hydro flows in the Northwest and lower natural gas prices. However, prices remained high due to a number of factors including: continued higher than normal spot natural gas prices, tight supply conditions caused by increased cooling demand, generation outages, and exercise of market power by sellers. In addition, many QFs remain off-line due to continued financial uncertainty surrounding payments from utilities. On average, the price of real time electricity in May decreased 26% to $275/MWh from the April average of $370/MWh. Although loads increased in May compared to April as warmer temperatures increased cooling demand, loads declined from May 2000 levels showing visible conservation efforts. Total load in May was down 1.7% from May of last year. When normalizing for weather conditions, the California Energy Commission estimate savings from conservation resulted in an 11% reduction in energy usage and a 10 percent reduction in peak demand on a weather normalized basis.

Document Locations:

• Market Monitoring - 1999 - 2001 Reports and Presentations