NYISO is “Well-Equipped” to Handle This Summer’s Demand
The NYMEX August contract closed on Thursday at $2.324/MMBtu and the prices at the Transco Zone 6 pipeline, which services NYC, decreased from $2.19/MMBtu last Wednesday to $2.18/MMBtu this past Wednesday, with a low of $1.98/MMBtu on Friday (EIA). Natural gas in storage increased by 98 bcf while market analysts expected an injection of 105 bcf. The total 2,301 bcf currently in storage is 11.4% higher than last year but 6.9% below the five-year average. Weather is expected to remain within normal temperatures in the East for the next week (Constellation).
New York State Assembly approved a legislation mandating a 100% statewide “clean” electricity transition by 2040 and net-zero emissions by 2050 (Constellation). Constellation’s Market Intel Newsletter stated that “NYISO is “well- equipped” to handle this summer’s demand forecast of 32,382 MW as well as the extreme scenario of 34,186 MW with 42,056 MW of capacity resources available.” ISO-NE’s grid is also expected to have sufficient operating capacity available to handle a “typical summer demand forecast” (25,323 MW) as well as an additional ~15% to handle the “extreme demand forecast” (27,212 MW) (Constellation).