Electricity Monthly Update
Regional Wholesale Markets: February 2024
The United States has many regional wholesale electricity markets. Below we look at monthly and annual ranges of on-peak, daily wholesale prices at selected pricing locations and daily peak demand for selected electricity systems in the Nation. The range of daily prices and demand data is shown for the report month and for the year ending with the report month.
Prices and demand are shown for six Regional Transmission Operator (RTO) markets: ISO New England (ISO-NE), New York ISO (NYISO), PJM Interconnection (PJM), Midwest ISO (MISO), Electric Reliability Council of Texas (ERCOT), and two locations in the California ISO (CAISO). Also shown are wholesale prices at trading hubs in Louisiana (into Entergy), Southwest (Palo Verde) and Northwest (Mid-Columbia). In addition to the RTO systems, peak demand is also shown for the Southern Company, Progress Florida, and the Bonneville Power Authority (BPA). Refer to the map tabs for the locations of the electricity and natural gas pricing hubs and the electric systems for which peak demand ranges are shown.
In the second tab immediately below, we show monthly and annual ranges of on-peak, daily wholesale natural gas prices at selected pricing locations in the United States. The range of daily natural gas prices is shown for the same month and year as the electricity price range chart. Wholesale electricity prices are closely tied to wholesale natural gas prices in all but the center of the country. Therefore, one can often explain current wholesale electricity prices by looking at what is happening with natural gas prices.
Wholesale prices
Wholesale natural gas and electricity prices fell considerably at all selected trading hubs from January to February and set new 12-month lows at several locations. Wholesale electricity high prices fell 67-92% at all selected trading hubs from the previous month. Prices also set new 12-month lows of $14.50/MWh on February 26 in Louisiana (into Entergy), $14.51/MWh on February 8 in the Midwest (MISO), and $20.91/MWh on February 9 in the Mid-Atlantic (PJM). Wholesale electricity prices were highest during the month in the Northwest ($68.25/MWh at Mid-C) and in New England ($60.47/MWh in ISONE). Wholesale natural gas high prices for the month fell 54-94% at all selected trading hubs from the previous month. Prices also set new 12-month lows in Texas ($1.00/MMBtu at Houston Ship Channel), $1.15/MMBtu in the Southwest (El Paso San Juan), $1.33/MMBtu in the Midwest (Chicago Citygates), $1.50/MMBtu in Louisiana (Henry Hub), and $2.22/MMBtu in Northern California (PG&E Citygate).
Electricity system daily peak demand
Electricity system daily peak demand highs during the month fell 1% in California (CAISO) and 7-28% at all other selected electricity systems from January to February. A new 12-month low was also set in Progress Florida on February 24. This considerable decrease in demand is a result of very mild temperatures during the month relative to normal. Average temperatures during February were above-average in all states, in the top-10 warmest Februarys going back 130 years in 28 states (including most states in the Midcontinent and Northeast) and was the warmest February on record in Iowa, Minnesota, Missouri, and Wisconsin.