| Week Beginning June 19, 2023 The summer solstice is Wednesday, June 21, and that means warmer temperatures should naturally be around the corner. We want to remind you that Energo sends out Severe Weather Alerts when hot temperatures cause stress on the electric grid. During Severe Weather Alerts, we advise that you reduce your electricity usage to help stabilize the electricity grid. Another reason to reduce your electricity during peak alert times is that it can help lower your capacity tag for the following year, which can help reduce your electricity bills year-round. Keep your eyes peeled for those Severe Weather Alert emails this summer. |
| If you’re thinking about hitting the road this summer for a road trip, you’ll be happy to know gas prices are lower than they were last year, and analysts at AAA believe the prices will stay steady all summer long, as long as there are no major hurricanes or geopolitical events to push prices higher. Gasoline prices on the East Coast were up $0.022 per gallon last week, bringing the average for a gallon of gasoline to $3.432 per gallon. Compared to 2022, that is down $1.417 per gallon. Diesel prices on the East Coast were also up slightly, gaining $0.013 per gallon to bring the average for a gallon of diesel to $3.860 per gallon. Compared to 2022, diesel is about $2 less per gallon. Propane prices dropped about $0.03 per gallon to an average of $3.19 per gallon in New York State. At this time last year, propane was averaging $3.56 per gallon. |
| The NYMEX 12-month strip rose $0.26/dth on the week for its biggest weekly increase since mid-May. Supply and demand factors tightened a bit as both sides of the equation supported higher prices. On the supply side, the weekly storage injection came in at a lower than expected 84 Bcf, setting volumes at 16% above the five-year average and 27% above year ago levels. Gas focused rigs also fell for the most recent reporting period, shedding 5 rigs and leaving 138. Some analysts think the gas rig count should start to stabilize at these levels as expectations were that the market could expect to shed 40-50 rigs from the 181 in use at the beginning of the year based on price signals from the low NYMEX price environment. Daily gas production also dipped below recent 100 +/day levels last week to 98.8 Bcf/day on Friday. On the demand side, July is beginning to show some stronger likelihood of above average temperatures in the important Northeast and Gulf Coast demand centers. New York City is showing temperatures consistently reaching daytime highs in the 85-90 degree range for stretches in July. LNG demand is also expected to increase next month as the planned May to June maintenance period for many of the major Gulf Coast facilities will be coming to an end over the next few weeks. Looking ahead, the market may continue last week’s momentum as the fear of summer heat may continue to prop up prices after weeks of bouncing around the $2.90 to $3.10/dth levels. |
| Power forwards were up $2-3/MWh last week for the 12-month strip. NYISO UCAP was relatively flat in all zones. Overall, the New York City capacity market continues to lack liquidity. PJM Class 1 RECs were up a few percent. |
| New Jersey residents are being asked to help the state figure out how to make NJ Transit more environmentally friendly. A draft sustainability plan addresses the themes of water, energy, air quality, climate resiliency, waste, mobility and accessibility, and community engagement. The public can comment on the plan during a webinar on Tuesday from 12 – 1:30 p.m. |