Renewables pressure SP15 forwards

摘要

The Q3 2016 on-peak package at SP15 has defied itsrnhistorical relationship to NP15 since April 2015, likely because ofrnexpectations for even stronger renewable output this summer in thernsouthern part of California.rnTypically the SP15 package has traded at a premium to NP15, fueledrnby more extreme summer weather in Southern California compared tornup north. That price relationship flipped in April of last year, whichrnpersisted until January 11.rnDuring the period SP15 was at a discount to NP15, the spreadrnaveraged negative $0.50/MWh. In contrast, the spread averaged $1.53/MWh over the same period that preceded the 2015 Q3 package.