We recently looked at the Day-Ahead and Real-Time electricity markets in PJM. The New York Independent System Operator (NYISO) also operates a two settlement process with Day-Ahead (DA) and Real-Time (RT) markets, which are the subjects of this article. First some background. The NYISO, like only two other ISOs (CalISO and ERCOT), serves only one…
Read MoreBelow are the results from a sampling of reverse auctions conducted for Avalon Energy Services’ customers, including customers of varying size, over the past few months. The first graph shows the customer’s annual energy costs before competitive bidding (blue line) and after contracts were executed on accepted bids (red line). Pre-auction annual energy costs ranged…
Read MorePJM operates two markets for energy, the Day-Ahead (DA) Market and the Real-Time (RT) Market. PJM’s Day-Ahead Market is a forward market in which hourly LMPs (locational marginal prices) are calculated for the next operating day based on generation offers, demand bids, and scheduled bilateral transactions. PJM’s Real-Time Market is a spot market in which…
Read MoreAs discussed several times previously on this blog, there is a common perception that energy prices always go up. We have examined both natural gas prices (read hereand here) and electricity prices (read here). In this post, we look again at electricity prices–specifically, how they behaved in PJM last year. PJM zonal day-ahead load weighted…
Read MoreBETHESDA, Md., May 14, 2013 – Avalon Energy Services, the Mid-Atlantic’s leading energy consulting firm, announced today that they successfully completed an electricity procurement for 19 commercial real estate properties managed by Donohoe Real Estate Services. The properties are located in Maryland and the District of Columbia. Under the new contracts, the properties will save…
Read MoreIn previous blog posts, we have examined how weather and other events affect electricity prices. What Does a Derecho Look Like? What Does a Warm Day Look Like? What Does an Earthquake Look Like? We continue this series by looking at how Superstorm Sandy impacted electricity prices in the PJM service area. After marching northward…
Read MoreBy David White In a post from January 2012, the declining correlation between the price of natural gas and the price of electricity was explored (click here). At that time, the correlation between the two was declining as a result of the greater recovery in electricity prices relative to those of natural gas. The graphs…
Read MoreIt has been argued that there is too much crude oil in the Strategic Petroleum Reserve and that it should be drawn down. Arguments have been made that one should “tie the amount of insurance you carry to the size of the need.” By that argument, because domestic production is up and “hit record levels…
Read MoreAs the author notes below, on September 5, 2012, TransCanada (NYSE: TRP), the Canadian energy company hoping to build the controversial Keystone XL pipeline, submitted its final re-routing plan to the Nebraska Department of Environmental Quality (DEQ) and the U.S. State Department. This submission represents the latest step in what has become a more than…
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