Energy Market Alerts

Northeastern Winter Natural Gas and Electricity Issues

Release date: January 9, 2014

As temperatures return to normal, prices begin to ease

Temperature: Temperatures returned to near-normal levels on Thursday and are expected to continue to rise through the weekend across the Northeast.

Natural gas demand: Bentek forecasts that demand will decrease today from yesterday in both New England (-11%) and New York (-7%) due to rising temperatures.

Natural gas constraints and LNG: Pipelines heading into New York and New England from the West and South remained constrained today, though LNG and imports from eastern Canada are expected to decline 49% from yesterday due to the reduction in total demand.

Natural gas prices: Prices set yesterday for delivery today are below $20/MMBtu in Boston and below $10/MMBtu in New York City (NYC), down between 30% and 65% from yesterday. Spot natural gas prices in Tetco M3 in Pennsylvania returned to within a dollar per MMBtu of the benchmark Henry Hub price.

Electricity prices: On-peak electricity prices formed yesterday for today dropped below $200/MWh in NYC and New England. The relatively elevated power prices in New York came as Entergy's Indian Point nuclear Unit 3 came back on line today, but only operated at 45% of its capacity according to the Nuclear Regulatory Agency's Power Reactor Status Report.

Pipeline notices: Due to the continued constraints on the pipeline system into the NYC and Boston markets, critical notices were declared for today on Algonquin and Tetco. These pipelines continued to require more-stringent hourly scheduling from generators.

Average temperature Wed
1/8
Thu
1/9
Fri
1/10
Boston 15°F 21°F 22°F
New York City 16°F 27°F 35°F
Natural gas demand
Bcf per day
Wed
1/8
Thu
1/9
Fri
1/10
New England 3.8 3.3 3.3
New York City 5.4 5.0 4.6
Spot natural gas price*
per MMBtu
Wed
1/8
Thu
1/9
Fri
1/10
New England $25.91 $18.25 --
New York City $26.58 $9.07 --
On-peak electricity price*
per MWh
Wed
1/8
Thu
1/9
Fri
1/10
New England $225.08 $199.91 --
New York City $233.59 $183.71 --
*Day-ahead market values set during trading from prior day
Forecasts denoted in italics
Sources: NOAA, Bentek Energy, SNL Energy

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Previous alerts

January 8, 2014

January 7, 2014


Northeastern Summer Electricity Market Alerts 2013

July 19, 2013

July 18, 2013

July 17, 2013


Northeastern Winter Natural Gas and Electricity Alerts 2013

January 25, 2013

January 24, 2013

January 23, 2013

January 22, 2013