June 20, 2024


PJM Regulatory Review

  • The US Senate has finally confirmed three new FERC Commissioners giving the esteemed body a full complement of 5 for the first time in a long while.

  • PJM’s “Deactivation Enhancement Senior Task Force” is working diligently to analyze and refine proposals in preparation for a final vote.

  • Four key states in PJM (Maryland, Pennsylvania, Illinois, and New Jersey) communicated unambiguously to the PJM Board about the importance of engagement with all the states on long-term transmission planning.

  • PJM has made available to the public a brochure that outlines PJM’s Regional Transmission Expansion Plan (RTEP) and its importance in meeting future grid requirements.

Energy Market Update

  • Natural gas prices for the Jule NYMEX contract made another run back up to $3.15/MMBTU after a hot forecast was published only to attract more sellers. Heat is here and cash prices remain weak, but storage balances should start to tighten again.

  • Mountain Valley Pipeline finally was able to initiate service this week after almost 10 years and over $7 billion in construction costs. It remains to be seen what the overall impact will be and how local gas supplies will be reallocated based on economics.

  • Oil prices have rebounded quickly from the recent sell-off caused by bearish demand forecasts and look to be well-supported at $80/BBL. Showing confidence in the future of oil motivated Berkshire to add to its holding in Occidental Petroleum which is now up to almost 30%.

  • The heat wave along the eastern seaboard pushed PJM’s load forecast above 150 GW with many consecutive days above 140 GW.

  • The impact of Artificial Intelligence and Data Centers continues to be the topic du jour as large corporate buyers struggle to obtain enough de-carbonized power and the power demand growth forecasts continue to increase.

  • Global LNG demand remains robust as heat in Asia sparked a lot of spot buying and supplies tightened reducing deliveries into Europe thus supporting prices around $11/MMBTU.

  • PJM’s load forecast for this upcoming heat wave has demand reaching up to 150,000 MW for this Friday.

Forward Pricing