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In This Issue

Eversource dealt 6-month Setback for Northern Pass Transmission Line

PJM Task Force Will Examine Value of Summer-Only DR Outside Capacity Market

Natural Gas and Oil Market Update

EIA - Weekly Natural Gas Storage Report

NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price


NOAA 6 to 10 Day Outlook
Color indicates the probability of forecasted temperatures being above or below a historical average for the period.


Market Overviews

Eversource Dealt Six Month Setback for Northern Pass Transmission Line

MassLivel | August 31, 2017

State regulators announced they will delay their final decision on the Northern Pass by another six months to March 30.

The New Hampshire Site Evaluation Committee on Thursday voted to extend their deadline for a written decision, which had been due at the end of September.

The controversial high-voltage transmission line would cut through the heart of the Granite State to bring Canadian hydropower to southern New England.

Eversource held its final public hearing for the Northern Pass in Concord on Wednesday.

The 192-mile, $1.6 billion project is planned by Eversource Energy in partnership with Hydro-Quebec. The line, with 60 miles buried, would carry enough electricity to power a million homes.

The U.S. Department of Energy this month recommended the project for a presidential permit to cross the Canadian border. State approval from the SEC is seen as essential to the project's advancement.

Northern Pass is one of several transmission lines proposed for Maine, New Hampshire, Vermont, and northern New York. The lines would carry hydro, wind, solar or stored electricity. Hydro-Quebec seems poised to work with whichever transmission project prevails.

The successful generation and transmission partnerships will not only win regulatory approval, but gain coveted power purchase agreements with utilities.

Utilities in Massachusetts, Connecticut and Rhode Island are in the market for long-term clean power contracts. A competitive project evaluation is now underway in Massachusetts, which is eager to meet its greenhouse gas reduction goals.

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PJM Task Force Will Examine Value of Summer-Only DR Outside Capacity Market

Utility Dive | August 31, 2017

New rules developed in the wake of the extreme winter Polar Vortex event three years ago have had an impact on demand response in the PJM footprint. Now, the grid operator is considering how better to include the highly-seasonal resource.

In a blog post, PJM said the scope of the problem statement had been "narrowed from considering all seasonal resources to focus on summer-only demand response, given that it was the seasonal resource with the largest amount of offered, but not cleared, megawatts in the 2020/2021 Base Residual Auction."

Capacity prices across most of the PJM market fell for the 2020-2021 delivery year, coming in under expectations and clearing 165,109 MW of unforced capacity in total. Demand response capacity clearing PJM's annual auction peaked in 2012, a year after the Federal Energy Regulatory Commission issued Order 745.

But after the polar vortex of 2014, when many resources were forced offline by extreme temperatures, the operator instituted new capacity requirements aiming to provide greater resiliency. But by requiring resources to be available year-round, PJM created a situation where demand response resources in the summer could not find enough winter resources to pair with, to create a year-round offer.

But while PJM is looking at how to include summer resources outside of the capacity market, it is not backing down from the new requirements.

In the problem statement, PJM noted that recent auction clearing results indicate that much of the demand response that cleared in previous auctions as a sub-annual resource "was able to make the transition to an annual commitment for the 2020/2021 Delivery Year, indicating that participation in RPM as a supply resource is still the preferred viable method for Curtailment Service Providers and customers to realize value for Demand Response resources."

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Natural Gas and Oil Market Update


Natural Gas Price Ticks Down on Storage Addition

24/7 Wall St | August 31, 2017

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 30 billion cubic feet for the week ending August 25.

Analysts surveyed by S&P Global Platts were expecting a storage injection of 29 billion cubic feet. The five-year average for the week is an injection of 67 billion cubic feet, and last year’s storage withdrawal for the week totaled 46 billion cubic feet. Natural gas inventories rose by 43 billion cubic feet in the week ending August 18.


U.S. Oil Prices Aim For 5Th Straight Week Of Losses

MarketWatch | August 31, 2017

Oil and gasoline prices pulled back in Friday’s trade, a day after logging significant gains attributed to bets that flooding after Hurricane Harvey would curtail supply.

October West Texas Intermediate crude CLV7, +0.04% fell 13 cents, or 0.3%, to $47.10 a barrel on the New York Mercantile Exchange. Prices saw a 2.8% advance Thursday and trade more than 1% lower for the week, according to FactSet data. They’re poised to suffer their fifth-straight weekly drop.

EIA - Weekly Natural Gas Storage Report

EIA - Weekly Natural Gas Storage Report

Working gas in storage was 3,155 Bcf as of Friday, August 25, 2017, according to EIA estimates. This represents a net increase of 30 Bcf from the previous week. Stocks were 239 Bcf less than last year at this time and 8 Bcf above the five-year average of 3,147 Bcf. At 3,155 Bcf, total working gas is within the five-year historical range.

NYMEX Natural Gas Week-to-Week Price Change NYMEX Natural Gas Week-to-Week Price Change

Natural Gas Futures - Five Year Price ($ per mmBtu)

NYMEX Natural Gas Week-to-Week Price Change - Five Yearly Snapshot

Disclaimer: The information contained in these reports is gathered from public and/or internal sources and is presented solely for the convenience of our customers and Newsletter Subscribers. Patriot Energy Group makes no representation or warranty, express or implied as to the accuracy or completeness of the information set forth in this newsletter, and Patriot Energy shall not have any liability to any person or entity resulting from use of this information in any way.
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