Electricity Monthly Update
Regional Wholesale Markets: June 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 electricity prices remained on the lower end of the yearly range during June at all selected trading hubs, except in New England (ISONE). Prices in New England (ISONE) reached $162/MWh on June 20. The highest price across the rest of the country was $86/MWh (New York City (NYISO)), far less than the $162/MWh high price in New England (ISONE). Peak prices at all other selected trading hubs ranged from $45/MWh in Northern California (CAISO) to $72/MWh in the Mid-Atlantic (PJM).
Wholesale natural gas prices also remained on the lower end of the yearly range at all selected trading hubs. The lowest price at each hub during the month ranged from $0.56/MMBtu in the Northwest (Sumas) to $1.78/MMBtu in Louisiana (Henry Hub). A new yearly low price of $1.56/MMBtu was set in Northern California (PG&E Citygate) on June 3. The highest price recorded at each selected hub ranged from $2.17/MMBtu in the Northwest (Sumas) to $3.85/MMBtu in New England (Algonquin).
Electricity system daily peak demand
Electricity system daily peak demand rose significantly from May to June on all selected electricity systems besides Bonneville Power Administration (BPA) in the Northwest. Demand outside of BPA was at least 88% of the 12-month maximum demand on all systems and set a new 12-month high in the Mid-Atlantic (PJM) on June 21. High electricity demand during the month was a result of high temperatures. Average temperatures were above average in all states in the continental United States, except North Dakota, and it was the hottest June using data going back to 1895 in both Arizona and New Mexico. It was also one of the warmest June’s on record at most states west of the Mississippi River, as well as in the Northeast, Mid-Atlantic, and down in Florida.