Outages, hydro, wildfires set to shape California markets this summer

摘要

A complex combination of factors is expected to impact California gas andpower prices this summer, with gas system constraints and wildfirespotentially boosting prices in both markets, and in-state hydropower likelymoderating power prices and helping meet peak demand in the state.On the gas side, recent increases in Southern California Gas’ gasstorage levels have eased market concerns over summer gas prices.Still, existing system constraints could significantly affect prices.Forwards prices for July and August were assessed Monday in themid-$5/MMBtu range, after trading in the mid-$6s/MMBtu earlier thisyear, S&P Global Platts data shows.After dipping to a record low at just 34.8 Bcf in March, SoCal Gasstorage levels have climbed to an estimated 56.7 Bcf Tuesday - about1 Bcf above the prior three-year average, according to data S&P GlobalPlatts Analytics compiled.