Average on-peak power prices climbed 6% to 10% between April and May in most eastern and central power markets but continued month-over-month declines in the western and Gulf regions.
Among nine regions tracked, the Midcontinent ISO market showed the largest month-to-month gain, of 9.9% to $22.57/MWh, after prices in the region declined 6.2% between March and April. Spot natural gas prices in the region averaged $1.650/MMBtu in May, up 2.2% from the prior-month average.
Prices in the Southwest Power Pool region averaged an 8.1% increase month over month. From April to May, spot gas prices across hubs in SPP jumped 19.3% to average $1.645/MMBtu. Prices were pulled up in part by prices at the El Paso Permian Basin hub in Texas that averaged $1.547/MMBtu in May, more than double April's average of 61 cents/MMBtu.
Average day-ahead, on-peak power prices rose 6.3% month over month in New York ISO and climbed 8% in PJM Interconnection even though natural gas prices slipped in both regions over the period. Spot natural gas prices in New York averaged 7.2% lower at $1.538/MMBtu in May. In PJM, spot gas prices averaged $1.531/MMBtu, falling 3.7% from April.
In the Electric Reliability Council Of Texas Inc., average day-ahead, on-peak power prices lost 14.7% from the prior month's average, but spot natural gas prices gained 14.4% to average $1.655/MMBtu. Average hourly load in May fell 2.7% from the May 2019 average, though electric demand reached a higher peak this year at 64,200 MW in May. The May 2019 peak load was 60,817 MW. The number of cooling degree days, a measure of cooling demand, was between two and 19 days above normal in the West South Central region, which includes Texas, according to the latest data from the U.S. National Oceanic and Atmospheric Administration.
Except for the California ISO, which experienced a 2.1% gain in average hourly load in May, seven other regions showed a decline in average hourly load. The largest year-over-year decline occurred in the Midwest ISO, where hourly load averaged 10.7% lower in May. In a May 29 update, Midwest ISO officials said load has been about 11% below expected levels over the last five weeks but is expected to pick up as states and cities within its region lift stay-at-home orders.
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