Softly, softly in the western US
Wary Californian power traders have reverted to tried-and-tested trading strategies. But, asks Catherine Lacoursière, will the new, apparently stable market hold up to another long hot summer?
By all accounts, the new price mitigation rules for power trading in the western US have succeeded in keeping power prices in check. The true test came on the heels of the July 4 holiday, when the western US faced its first heat wave since the former power trading regime collapsed during 2000 and 2001. This time, when temperatures – and therefore demand – spiked, the price of power was capped at $92 a megawatt hour (MWh).
Nevertheless, the ultimate vote of market confidence –
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