Monday, August 20, 2007

NEI Energy Markets Report, August 6-10, 2007

Here's a summary of what went on in the energy markets last week:

Entergy, ERCOT and PJM electricity peak prices increased by more than $10/MWh while Palo Verde, NEPOOL and SP15 modestly declined. The Midwest, South and Eastern regions of the U.S. continued to experience hot summer temperatures last week (see pages 1 and 3).

Gas prices at the Henry Hub increased $0.12 to $6.28/MMBtu (see pages 1 and 3). According to EIA, above normal temperatures last week resulted in upward spot price movement.

UxConsulting’s and TradeTech’s uranium spot prices fell to $105/lb U3O8 (see pages 1 and 3). TradeTech’s price fell $15 which “is the largest single drop recorded in the spot price since TradeTech began publishing prices in 1968.” UxC’s mid year uranium production assessment for 2007 was adjusted downwards to 112 million pounds from 117 million pounds. Even though prices have been declining for the past seven weeks, UxC affirms there is still concern on the security of near and long-term supplies.

The estimated U.S. nuclear plant availability factor averaged 99% for the week. Salem 2 tripped for a brief period due to a faulty electric circuit card. Hatch 2 scrammed due to low reactor water level. Diablo Canyon 1 was at zero power August 11th (see pages 2 and 4).

Crude oil prices continued to climb to $76.75/barrel as of 8/3/07. According to EIA, U.S. crude oil inventories stand at 340.4 million barrels, well above the average range, and 34 million barrels above the five-year average. However, inventories are projected to decline in the second half of 2007 relative to their average pattern (see pages 1 and 3).

For the week ending August 4, the Edison Electric Institute said electric generation increased 8.0% from the previous week. Conversely, the August 4 one week period for 2007 was 5.1% lower than the same one week period for 2006 (see page 1).
For the report click here. It is also located on NEI's Financial Center webpage.

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