1 min read
Webinar Recording: Downstate New York Regulatory & Energy Market Discussion, August 2023
By 5 on August 30, 2023
Topics: Markets NYISO Videos Education
Webinar Recording: Upstate New York Regulatory & Energy Market Discussion, July 2023
By 5 on August 1, 2023
Topics: Markets NYISO Videos Education
4 min read
New York: a Capacity Problem with no Solution
By 5 on July 18, 2023
Many are surprised to learn that there are several cost components that are added together to establish the rate in cents per kilowatt-hour in an electricity supply contract. Those components are summarized in Figure 1, which shows that the two largest are energy and capacity. It’s important to note that both energy and capacity are market-based, which means that the price of both is based on the forces of supply and demand. And while it may not be obvious, regulations and legislation can have a significant effect on the forces of supply and demand and thus the power markets. Between April 2018 and May 2019, the price of energy in New York City increased nearly 40% largely driven by a carbon tax proposed by the NYISO. Doubts around implementing that carbon tax caused prices to dramatically fall to just fourteen months later. This is an example of how regulatory forces can move market prices. Today, regulations in New York State are causing a dramatic increase in the price of capacity, the second largest cost component in a retail electricity supply price (See Figure 1).
Topics: Markets NYISO
4 min read
Mid-Summer Market Update: ERCOT, PJM & NYISO
By 5 on July 17, 2023
Given that we are halfway through July, we thought it would be appropriate to provide an update on how major power markets have performed as they relate to each ISO’s coincident peak demand management program.
So far, both weather and demand on the PJM and NYISO grids have been mild compared to recent summers and average summer temperatures. The mean temperature, compared to the average over the last thirty, fourteen, and seven days for the period ending July 13, is shown in Figures 1, 2, and 3 below. These charts show that summer has not really arrived in the middle of the country and that temperatures in the Northeast are only 2º to 3º F above the average.
Topics: Markets PJM NYISO ERCOT Demand Response Resiliency
4 min read
Coincidental Peak Alerts 2024
By 5 on May 22, 2023
Topics: Markets PJM NYISO ERCOT Demand Response Resiliency
Webinar Recording: Upstate NEW York Regulatory & Energy Market Discussion
By 5 on April 27, 2023
Topics: Markets NYISO Videos Education
4 min read
Con Edison On-Site Solar Incentives
By 5 on March 3, 2023
One might legitimately expect a future TV series to be called, “It’s Always Sunny in New York City.” This is not because there is a spin-off of the acclaimed FX series in the works, but because the economics of solar power in Con Edison’s service territory have never been more attractive. It is worthwhile for clients who may have considered on-site solar in the past to re-examine the options that are available. Highly attractive incentives from the federal government and Con Edison in addition to rising utility rates have created an ideal opportunity to get new or updated on-site solar proposals. There is some degree of time sensitivity, since incentives from the utility will run out once enough solar projects have been approved by Con Edison.
Topics: Markets NYISO
2 min read
Con Edison Joint Proposal
By 5 on February 28, 2023
Over a year ago we reported that Con Edison had filed for a one year rate case to increase electric delivery rates by 17.6% and gas delivery rates by 28.1%, resulting in a system-wide cost increase of $1.2 billion and $500 million respectively. Figure 1 compares the proposed cost increases to take effect in 2023 to those filed in previous years.
Topics: Markets NYISO
12 min read
February 2023 - Energy Market Letter
By Jon Moore on February 22, 2023
On behalf of the team at 5, I am pleased to forward our February market letter. This letter discusses: (i) the recent fall in natural gas prices and increasing natural gas price volatility, (ii) the 188th Congress and the potential impact of the election on Federal and State energy policy in 2023, and (iii) how the electricity grid held up during Winter Storm Elliott and the February cold snap.