CPV RETAIL BLOG

October 26, 2026

  • PJM continues the process of maneuvering through “FERC reconciliation/suggestions” so the Reliability Backstop Auction can proceed. The timing is interesting because the next Base Residual Auction (BRA-2029/2030) is scheduled for December and is likely to result in an additional capacity shortfall from the prior BRA.

  • The original RBA was accepted by FERC on September 29, but was suspended for 5 months and was subject to additional modifications/comments from FERC.

  • The multi-phase process combines a bilateral contracting period coupled with a central procurement process, allowing PJM to deal with a likely shortfall.

  • PJM’s current forecast anticipates a 32,000 MW peak load growth by 2030, consisting primarily of data centers.

NYISO Regulatory Review

  • The NYISO updated their market tariffs after a FERC Commission Order was issued on October 19.
  • Recent proposed changes to the tariffs include provisions to address the seasonal reliability risks and improve their assessment of seasonal availability of resources. Firm transportation constraints is a key parameter for winter supply metrics.
  • The ISO is still facing tight reserve margins even with additional solar resources being deployed and available dispatchable generation remains stagnant.

Market Drivers

Market Drivers as of October 23, 2026.

  1. Gas Storage/Year over year difference. A positive number is bearish, and a negative number is bullish.
  2. Production /Year over year growth/trend is important in the context of demand growth.
  3. LNG Exports/Year over year growth means demand is growing and should be looked at in comparison to production trend.
  4. Mexican Exports/Add to LNG Exports to show a trend in exports compared to the production trend.
  5. PJM Outages- generally seasonal in Spring or Fall/Can support short-term prices.
  6. Gas Focused Rig Count/Is drilling increasing to grow production versus demand growth. This can be seen as impacting price in the future based on expected load growth.

Energy Market Update

  • The natural gas price sell-off continues unabated as production remains strong and expectations of continued warm weather have taken the premium out of the winter. The November NYMEX is near lows of 2020 at $2.67/MMBTU.
  • Power prices have not sold off as hard as natural gas prices but the relentless chatter about the Super El Nino creating a blast furnace warm winter continues to motivate selling across the winter strip and into Calendar/2027.
  • The fall outage season is still running strong with almost 70,000 MW out for maintenance after a strong summer of sustained operations by many PJM generating assets.
  • Even with the increased power demand natural gas spot prices have been sub $1.50/MMBTU in the northeast which has lowered coal generation.

Forward Pricing