U.S. West Coast power and natgas prices soar on extreme cold

(Reuters) – U.S. West Coast power and prices have almost tripled over the past couple of weeks and are on track to hit annual multi-year highs as freezing weather and snow blankets parts of California, and gas pipeline outages and constraints limit flows into the region.

In Northern California, next-day gas for Wednesday at the PG&E (NYSE:) Citygate jumped to around $48 per million British thermal units (mmBtu), its highest since hitting a record $53 in December 2000, according to data from Refinitiv.

Gas at the Southern California (SoCal) Border rose to $50 per mmBtu, its highest since hitting $103 in February 2021 when Winter Storm Uri cut gas supplies from Texas and forced the Texas electric grid operator to impose rolling power outages.

That compares with a SoCal daily record of $136 per mmBtu also hit during the February 2021 freeze.

That puts PG&E gas on track to average $8.54 per mmBtu in 2022, which would be its highest since hitting an annual record $8.62 in 2008, according to Refinitiv data going back to 2000.

SoCal Border, meanwhile, is on track to average $8.30 per mmBtu in 2022, which would top its current annual record of $6.29 in 2021.

Next-day power for Wednesday jumped to $474 per megawatt hour (MWh) at the Mid Columbia (Mid C) Hub in Washington State and $411 in SP-15 in Southern California, their highest since September, according to data from the Refinitiv.

In September, daily prices at the Mid C hit a record of $1,040 per MWh, while SP-15 hit $550, its second highest ever.

SP-15 hit a daily record of $698 per MWh in August 2020 when an extreme heat wave forced California’s power grid operator to impose rolling outages.

That puts Mid C on track to average $83.46 per MWh in 2022, which would top its current annual record of $64.94 in 2008, according to data from the Intercontinental Exchange (NYSE:).

SP-15, meanwhile, is on track to average $81.25 per MWh this year, which would be its highest since hitting an annual record $124.94 in 2001, according to ICE data going back to 2001.

Hub Unit State/Regio 2022 2021 Five-Year

n Year-To-Dat Average (2017-2021)

e Average Average

Power

Mid C $/MWh Washington 86.98 61.04 37.35

SP-15 MWh Southern 79.47 56.15 44.41

California

Gas

SoCal Border $/mmBtu Southern 8.30 6.29 4.43

California

PG&E Citygate $/mmBtu Northern 8.54 5.02 3.62

California

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