Cheaper fuel, surging nukes weaken NYISO prices in May: report
Weaker fuel prices and stronger nuclear output outweighed heavier loads to push New York Independent System Operator real-time load-weighted average prices lower in May, compared with April, according to a report to be presented Wednesday to NYISO’s Business Issues Committee.
NYISO’s real-time load-weighted average locational marginal price was $28.64/MWh in May, down from $30.81/MWh in April, but up from $21.99/MWh in May 2016, according to the written report prepared by Rana Mukerji, NYISO senior vice president for market structures.
At the Transco Zone 6 New York price point, spot natural gas averaged $2.80/MMBtu in May, almost flat with April’s $2.81/MMBtu, but up by more than 76% from May 2016’s average, $1.558/MMBtu.
Ultra-low sulfur No. 2 diesel at the New York Harbor averaged $10.82/MMBtu this May, down from $11.31/MMBtu in April but up from $10.17/MMBtu in May 2016.
Another factor in May’s month-to-month real-time power price decrease was surging output from New York’s nuclear generation fleet in May, in comparison with April and May 2016. The amount of capacity that was offline this May, averaging 398 MW/day, was down by about 73% from April’s average of 1,488 MW/day and by about 66% from May 2016’s average of 1,183 MW/day, according to US Nuclear Regulatory Commission data.