NORTHEAST POWER MARKETS ENERGY WATCH - November 2009
Authors: Paul Flemming, José Rotger and Chris Kostas
Here is a sample of information from November 2009 NORTHEAST ENERGY WATCH MONTHLY report
SUMMARY: In this month’s issue of Energy Watch, ESAI assesses the changes in the SEMA zone (Southeast Massachusetts) that are reducing uplift payments and reducing the zonal spread to the Mass Hub. SEMA was historically discounted to the Mass Hub, but the addition of the Lower SEMA interface effectively transferred the cost of operating the Canal generating units from uplift to LMP. Recent transmission upgrades are narrowing the SEMA differential.
Natural gas prices are now in a sideways trend, with upside capped by very high inventories and robust production levels. Downside is moderated in the near term by the the uncertainty of weather conditions in the upcoming winter months.