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Electricity over $900/MWh in most of Western US now

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Re: Electricity over $900/MWh in most of Western US now

#11

Post by cosmotic »

jedberg wrote: post #2

I need more context. Is that a lot? Is that low? Is it a big change from before? In what direction?

The scale on the map appears to have a filter maximum of $150 so I would guess it's 6 times their expected maximum, so very very expensive. Here's another region to compare to: https://www.pjm.com/library/maps/lmp-map.aspx

Re: Electricity over $900/MWh in most of Western US now

#12

Post by stefan_ »

bob1029 wrote: post #3
jedberg wrote: post #2

I need more context. Is that a lot? Is that low? Is it a big change from before? In what direction?

This is 90c/KWh. Arguably very expensive rate for electricity. Not sure if related to the Texas/ERCOT grid situation, as the DC tie-ins are not that substantial.

I think it might be related to this:

https://twitter.com/MattOswaltVA/status/1361442090979262465

Re: Electricity over $900/MWh in most of Western US now

#14

Post by nimos »

jedberg wrote: post #2

I need more context. Is that a lot? Is that low? Is it a big change from before? In what direction?

900/Mwh is 90c per kwh. Normal wholesale is about 5-7c. Retail national average is about 14. Higher cost states are around 20c with Hawaii near 30c.

Re: Electricity over $900/MWh in most of Western US now

#15

Post by bmurray7jhu »

Likely corresponds to the nationwide spike in natural gas prices.

Even in California, natural gas prices are an order of magnitude higher than usual. Prices appear to have hit ~$90 per quadrillion BTU, versus a typical price of ~$2 per 10^15 BTU

https://www.naturalgasintel.com/data-snapshot/daily-gpi/CALR...

Re: Electricity over $900/MWh in most of Western US now

#16

Post by cperciva »

pkaye wrote: post #5
bob1029 wrote: post #3

Earlier quoted context omitted.

This is 90c/KWh. Arguably very expensive rate for electricity. Not sure if related to the Texas/ERCOT grid situation, as the DC tie-ins are not that substantial.

If they are not connected, what is driving up the cost?

Texas isn't the only place with cold weather right now. Even if other grids haven't collapsed, they're surely under higher strain than normal.

Re: Electricity over $900/MWh in most of Western US now

#18

Post by gruez »

lainga wrote: post #9

Do wholesale prices directly translate to consumer prices?

Likely not, and that's part of the reason why it's so high in the first place. Price is a function of supply and demand. In this case the supply is limited, but demand stays the same because there's basically zero incentive for consumers to reduce discretionary electricity usage.

Re: Electricity over $900/MWh in most of Western US now

#19

Post by etimberg »

pkaye wrote: post #5
bob1029 wrote: post #3

Earlier quoted context omitted.

This is 90c/KWh. Arguably very expensive rate for electricity. Not sure if related to the Texas/ERCOT grid situation, as the DC tie-ins are not that substantial.

If they are not connected, what is driving up the cost?

Could be a number of factors. Prices are generally composed of generation, loss, and congestion terms. The generation term is driven by the marginal cost of energy (i.e. what's the cheapest generator that still has capacity). The losses term is fairly self explanatory. The congestion term factors in the thermal ratings on equipment based on what can be delivered to a location.

Someone else speculated that this is due to a rise in Natural Gas costs. This would make some sense given that the rise is uniform across the region.

Disclaimer: I work in the energy space. I know nothing about what is happening here and these are personal opinions.

Re: Electricity over $900/MWh in most of Western US now

#20

Post by sremani »

bob1029 wrote: post #3
jedberg wrote: post #2

I need more context. Is that a lot? Is that low? Is it a big change from before? In what direction?

This is 90c/KWh. Arguably very expensive rate for electricity. Not sure if related to the Texas/ERCOT grid situation, as the DC tie-ins are not that substantial.

Texas banned out of state sale of NG, that will have consequence but not sure that is the reason.
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