With extreme weather events, the average wholesale electricity prices at major trading hubs in the United States rose and were volatile throughout much of 2022. The limited availability of coal to substitute for higher-priced natural gas also contributed to the high prices.
Average cost of wholesale U.S. natural gas in 2022 highest since 2008
The EIA forecasted that the natural gas spot price at the Henry Hub will average $4.90 per MMBtu in 2023 which is more than $1.50 per MMBtu lower than the 2022 average. The EIA also expects prices to stay nearly the same in 2024 as dry natural gas production continues to grow in the US and outpaces domestic natural gas demand and exports for most of the year.
Constellation, NRG and other generators urge FERC to reject PJM’s mid-capacity auction rule change
Major generators and clean energy trade groups are urging federal regulators to reject PJM’s proposal to change capacity market rules during an auction stating it would undermine certainty in wholesale power markets. On the other hand, PJM’s market monitor and state regulators generally support the proposal, as it would address a flaw in rules that PJM said would lead to a 400% increase over what they’d have expected for capacity prices in the Delmarva Power South area.
Utility Dive identified 9 trends to watch in 2023: FERC; Congress; cybersecurity; reliability; renewable energy; Hydrogen; energy storage; nuclear power and EVs. Check out the article to see a summary of each trend!
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