Bloomberg Power Lines Report

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Bloomberg Energy Department

06/08 Bloomberg Daily Power Report

Table

Bloomberg U.S. Regional Electricity Prices
($/MWh for 25-50 MWh pre-scheduled packages, excluding transmission c=
osts)

On-Peak
West Coast Index Change Low High
Mid-Columbia 55.00 +17.00 50.00 60.00
Ca-Or Border 61.50 +18.00 60.00 63.00
NP15 61.88 +20.45 57.00 65.00
SP15 63.44 +15.56 55.00 69.00
Ault Colorado 65.00 +22.50 55.00 69.00
Mead 80.00 +15.00 79.00 81.00
Palo Verde 75.00 +22.86 67.00 85.00
Four Corners 77.50 +29.00 72.00 83.00

Mid-Continent
ECAR 42.32 +10.06 37.71 45.57
East 44.50 +10.50 43.00 46.00
AEP 42.33 +10.33 37.00 46.00
West 39.50 +8.17 35.00 44.00
Central 41.43 +10.03 35.00 45.00
Cinergy 41.43 +10.03 35.00 45.00
South 43.06 +10.89 37.00 47.00
North 44.00 +10.50 42.00 46.00
Main 41.51 +10.23 36.50 45.00
Com-Ed 40.73 +9.61 35.00 44.00
Lower 42.29 +10.84 38.00 46.00
MAPP 40.25 +12.55 37.50 43.50
North 39.50 +13.17 37.00 42.00
Lower 41.00 +11.93 38.00 45.00

Gulf Coast
SPP 46.58 +16.01 44.00 48.50
Northern 44.67 +14.03 40.00 48.00
ERCOT 37.69 +2.13 37.00 40.50
SERC 42.46 +5.53 39.11 44.87
Va Power 40.67 +8.67 39.00 42.00
VACAR 34.00 -3.67 33.00 35.00
Into TVA 43.06 +10.89 37.00 47.00
Out of TVA 46.76 +10.45 41.29 51.60
Entergy 47.39 +10.72 41.00 51.00
Southern 47.33 +7.66 45.00 49.00
Fla/Ga Border 38.00 -6.00 37.50 38.50
FRCC 63.00 +2.50 62.50 63.50

East Coast
NEPOOL 40.20 +18.70 40.00 40.50
New York Zone J 59.00 +13.00 57.00 61.00
New York Zone G 48.50 +10.12 47.50 49.50
New York Zone A 33.70 +6.32 33.25 34.50
PJM 39.60 +9.22 38.85 41.75
East 39.60 +9.22 38.85 41.75
West 39.60 +9.22 38.85 41.75
Seller's Choice 39.10 +9.22 38.35 41.25
End Table

Western Electricity Prices Rise With Weekend Risk, Hot
Weather

Los Angeles, June 8 (Bloomberg Energy) -- Power prices
for Sunday-Monday delivery in the Western U.S. increased
today amid weekend risk premiums and warmer weather
forecasts in the Southwest, traders said.
In its seven-day outlook, Belton, Missouri-based
Weather Derivatives Inc. predicted high temperatures would
average about 2 degrees Fahrenheit above normal in the
Southwestern U.S.
The Bloomberg index price for Mid-Columbia day-ahead
heavy load power increased $17.00 to $55.00 a megawatt-hour
amid trades at $50.00-$60.00. The off-peak index gained
$19.67, with trades completed at $40.00-$43.00.
"There was a buying interest today which caused prices
to have gains for the day,'' said one Northwest trader.
At the NP-15 delivery point in Northern California,
the Bloomberg index for peak power climbed $20.45 from
yesterday to $61.88, with trades completed at $57.00-
$65.00.
Traders said power prices were rising with the return
of heavier weekday loads and uncertainty over whether or
not all generation currently available will be operating
after the weekend.
"Even though temperatures have been near normal, they
should increase next week, which will boost air-
conditioning load in the Southwest,'' said one Southwest
trader.
At the SP-15 delivery point in Southern California,
peak power increased $15.56 to a Bloomberg index of $63.44,
with sales completed at $55.00-$69.00
In the Southwest, power prices jumped an average of
$22.86 at the Palo Verde switchyard to a Bloomberg average
of $75.00 amid trades in the $67.00-$85.00 range.
According to Lexington, Massachusetts-based Weather
Services Corp., temperatures in Phoenix were expected to
peak today at 110 degrees Fahrenheit.

-Robert Scalabrino

Northeast Spot Power Prices Soar Ahead of Warm Weather Forecast

Philadelphia, June 8 (Bloomberg Energy) -- Next-day power
prices rocketed to monthly highs throughout the Northeast U.S.
this morning on anticipated higher weather-related cooling loads,
traders said.
In the Pennsylvania-New Jersey-Maryland Interconnection,
power scheduled for Monday delivery was assessed at a Bloomberg
volume-weighted index of $39.60 per megawatt hour, up $9.22, or
30.3 percent, from yesterday.
Traders said early morning deals were executed as high as
$41.75, before trailing off to lows of $39.00 prior to daily
options expiration, or 10 a.m. local time.
According to Weather Services Corp. of Lexington,
Massachusetts, temperatures in Philadelphia and Baltimore, two of
the regions primary load centers, will peak at 82 and 81 degrees
Fahrenheit Monday, respectively.
Next-week packages also sold higher in anticipation of
increased cooling loads, though traders said the market was very
volatile, representative of continued skepticism about conflicting
weather forecasts. Parcels for June 11-15 traded as high as $47.00
and as low as $43.50.
"Some people are still feeling skiddish about these
forecasts," said one PJM-based trader. "Weather's not an exact
science. A lot of people are buying into the hype, but others are
holding out until the heat actually materializes."
In the New England Power Pool, for-Monday power was assessed
$4.95 higher at an index price of $41.70. Trades spanned a tight
range of $41.50-$42.00, with most deals completed on the lower
end, marketers said.
New England traders cited strong real-time prices and rising
temperatures as the primary reasons for the climb.
"In spite of healthy generation in the pool, we've seen
comparatively strong prints [or real-time prices]," said one
trader. "While temperatures have yet to do anything impressive, no
one's willing to short themselves. This early in the season, you
can afford to go flat to long."

-Karyn Rispoli

Warmer Monday Forecast Drives Mid-Continent Power Prices Higher

Cincinnati, June 8 (Bloomberg Energy) -- Prices for peak
power delivered Monday in the Mid-Continent U.S. climbed today as
warmer weather boosted demand from the South, traders said.
The Bloomberg index price for power delivered into the
Cincinnati-based Cinergy Corp. transmission system rose $10.04 to
$41.44 a megawatt-hour, with trades ranging from $45.00 down to
$35.00 after options expired.
East Central Area Reliability Council traders said the
Cinergy market opened at $44.00 on the strength of yesterday's
next-week market, then rose to the day's high amid buying
pressure from marketers.
Traders said once prices hit $45.00, players began selling
excess power to the Tennessee Valley Authority grid, where hot
weather forecasts boosted demand for imports. As utilities in TVA
filled positions and buyer interest lessened, prices plunged.
Concerns about weather-related demand also pushed short-term
over-the-counter prices up, as power for Tuesday-Friday delivery
next week was offered as high as $46.50. However, traders said
with recent inaccurate weather forecasts, the market could either
rise or fall next week.
"It could get hot. That's the main concern," an ECAR trader
said. "There's a lot of variables though. If the weather comes in
and we get into the gas stack, we could see $60 power. If not, we
could see $30 power. It's going to be interesting."
In the Mid-America Interconnected Network, for-Monday power
at the Chicago-based Commonwealth Edison hub again traded at a
discount to Cinergy, climbing $9.60 to $35.00-$44.00 as
temperatures weren't expected to be as high as in Cincinnati.
"We've still got 50-something degree lake water, and if the
breeze blows off the lake into the city, its definitely going to
be cooler here than at Cinergy," one trader said.
Power in lower MAIN sold $10.84 higher on average at $38.00-
$46.00 amid heavy demand from the New Orleans-based Entergy Corp.
grid, where Monday parcels sold $10.72 higher at $41.00-$51.00,
traders said.
Mid-Continent Area Power Pool day-ahead power sold higher
again today, though transmission problems limited volume in the
region, traders said.
For-Monday parcels traded $13.17 higher on average at
$37.00-$42.00 in northern MAPP and $11.93 higher on average at
$38.00-$45.00 in the southern half of the region.
"It's going to be warmer down in SPP (the Southwest Power
Pool) than it is here, so everyone wants to export," a MAPP
trader said. "The problem is, we don't know how transmission will
hold up, so no one is selling as much as they'd like."

-Ken Fahnestock

Most Southeast Power Prices Climb With Weekend Risk, Weather

Nashville, Tennessee, June 8 (Bloomberg Energy) -- Spot
electricity prices for power delivered Monday rose throughout
most of the Southeast U.S. because of weekend risk premiums
associated with forecasts for warmer weather, traders said.
Lexington, Massachusetts-based Weather Services Corp.
predicted high temperatures would be 89 degrees Fahrenheit in
Nashville and 91 degrees in New Orleans Monday.
Electricity parcels for delivery Monday into the Tennessee
Valley Authority transmission grid traded at $37.00-$47.00 a
megawatt-hour, with the Bloomberg index price at $43.06, up
$10.89 from yesterday.
Traders said strong prices at the Cincinnati-based Cinergy
Corp. grid, a primary source of import power, caused TVA to open
with high trades. As utilities filled positions, prices dropped.
On the New Orleans-based Entergy Corp. grid, for-Monday
power sold $10.72 higher on average, with the market opening at
$51.00 and trading down to $41.00 after options expiration.
Market conditions at Entergy were similar to those at TVA,
though traders said transmission problems complicated their
attempts to import power from the north.
Although prices at both the TVA and Entergy hubs fell during
the day, traders said the market could recover and trade up
Monday if temperature forecasts are accurate and typical
transmission problems occur, limiting imports from the Midwest.
"The last time you had a lot of people in the Southeast
buying from Cinergy, TLRs (Transmission Line Loading Relief
measures) kicked in when delivery started," one trader said.
"If that were to happen again, things could very well take
off, because we'd be getting into gas to meet the load we're
expecting," he said.
The exception to higher prices was the Florida-Georgia
border market, where peak power for Monday delivery sold $6.00
less on average at $37.50-$38.50.
Traders there said transmission problems eliminated the
ability to move power into Florida, causing prices at the border
to separate from the in-state market.
With imports unavailable, peak in-state parcels traded up
$2.50 at $62.50-$63.50 because of increased reliance by utilities
on high-priced, gas-fired power to meet heavy cooling demand.
Temperatures in much of the state were forecast in the low-
90 degrees Monday, according to Weather Services.

-Ken Fahnestock

U.K. Power Prices Little Changed in Limited Activity

London, June 8 (Bloomberg Energy) -- Power prices in the U.K
were little changed today amid lackluster trade ahead of the
weekend, traders said.
August baseload traded 5 pence lower at 17.65 pounds a
megawatt-hour.
Winter 2001/02 baseload remained unchanged following trades
at 21.28 pounds a megawatt-hour.
In the spot market, week-ahead prices gained ground following
heavy buying interest by few counter parties indicating a
potential power plant outage, traders said, although this could
not be confirmed.
"It was a very thin market, and buying seems to have come
from one particular direction," one trader said.
Week-ahead prices gained 40 pence following trades at 18
pounds a megawatt-hour.
Moreover, forecasts for colder weather also boosted weekend
prices, traders said.
Weekend traded 10 pence higher, following trades at 16.85
pounds a megawatt-hour.

-Amal Halawi

Nordic Electricity Prices Tumble on Unexpectedly Abundant Rain

Lysaker, Norway, June 8 (Bloomberg Energy) -- Electricity
prices on the Nordic Power Exchange in Lysaker, Norway, closed
lower today after above-average precipitation yesterday renewing
expectations of increased hydro-supply, traders said.
Winter-2, 2001 traded 297.00 megawatts at 222.25-224.25
kroner a megawatt-hour, down 0.70 kroner. Winter-1, 2002 also fell
after 127.00 megawatts were exchanged between 228.25-230.50 kroner
a megawatt-hour, 0.25 kroner lower.
Yesterday, rainfall amounted to 2 terawatt-hours, exceeding
most forecasts, a trader said.
Saturday's system area average price fell less than expected
to 200.37 kroner a megawatt-hour, only 8.08 kroner lower than
today's price. A "much lower'' spot price was anticipated for
Sunday to compensate for tomorrow's "wrong price,'' an Oslo-based
trader said.
Renewed selling interest also came after marketers sold
previously bought contracts in an attempt to profit from higher
prices earlier this week.
"Although forecasts are drier for next week, it's a good
opportunity for participants holding an excess of contracts to
sell them at very profitable prices,'' a Stockholm-based trader
said earlier today.
Across Scandinavia, below-normal rainfall was anticipated
over the next 5 days, according to Weather Services Corp. in the
U.S.
Shorter-term contracts also fell. Week 24 shed 0.50 kroner to
close at 208.25-211.25 kroner a megawatt-hour with 285.00
megawatts traded.
Total trade volumes were little changed today at 2,819
gigawatt-hours generation, compared to yesterday's 2,827 gigawatt-
hours.

-Alejandro Barbajosa
-0- (BES) Jun/08/2001 20:26 GMT
=04

- daily.pdf