Ready for NYISO Annual Highs?
December 02, 2019
With prices at less than $25.00/MWh in NYISO Zone J and Zone G, it may be hard to imagine daily average day ahead prices at 10X these levels. However, we are approaching the months where these zones see their annual highs. A look at historic data from 2005-2019 shows that annual high in daily average day ahead prices almost always occurs in the months of January or February. In fact. more than 99% of the highs occur in these two months, with only an occasional December or March outlier. It’s not the summer heat, it’s the winter heating (aka natural gas demand) that creates the extremes. The respective five-year highs are $217.92/MWh for Zone J and $191.09/MWh for Zone G respectively. Both occurred when average daily temperatures were in the teens.