(CTN News) – Last week, power prices continued to decline across the country, with some regions seeing a drop of more than 20% from the previous week.
In the first week of November, the average power price across observed markets was $42.06 per MWh, a decrease of $6.40 from the last week of October.
There has been a decline in national power prices for four consecutive weeks, which coincides with a decline in gas prices and a decrease in demand for electricity.
In New York, power prices declined by an average of 30% over the past two weeks, falling to $30.54 per MWh on average. As the only state in the previous week to increase prices to an average of $69.02 per MWh, California was an exception for the United States.
Market prices in the eastern U.S. all followed a downward trend, likely in response to the recent fall in the Henry Hub natural gas price.
Here is a chart that illustrates the relationship between October’s power prices and the Henry Hub natural gas price.
Western U.S. prices increased due to heavy snow that began on 31 October throughout much of the northwest.
There was a 3% increase in electricity demand in the Northwest and a 1% increase in California as a result of the snow.
It is expected that winter weather will move into the eastern U.S. within the next few weeks.
Henry Hub December futures have increased from about $6 per million British thermal units (MMBtu) recorded on Nov. 3 to over $7 per MMBtu recorded on Nov. 7.
As a result of an increase in demand in the western United States, hydroelectric power generation increased by 12%.
Heavy snowfall increased hydroelectric potential and prices, inducing hydroelectric plants to increase their output.
Due to the upcoming winter season, solar PV generation fell 16% across the United States.