Thursday, the U.S.
Energy Information Administration (EIA) reported that working gas in storage as
of Friday May 27, 2022 was 1,902 Bcf. This was an increase of 90 Bcf from the
previous week, a higher than expectations, contributing to a decrease in the front
end of the curve Thursday. Inventories are still very low, now 397 Bcf lower
than this same time last year, and 337 Bcf below the 5-year average.
yet another week, prices have been swinging wildly and remain near the 5-year
highs. The prompt 12-month NYMEX natural gas strip (Jul22-Jun23) was down 2.8%
and the 12-month PJM STD 7x24 down 4.4% for the week. Prices were up further
out in the curve for both power and gas.
heat over the Memorial Day weekend and the following Tuesday led to significant
PJM loads on 5/31/2022. Tuesday peaked at 138.2 GW which would have been high
enough to be a contender for the eventual 5-highest peaks of the 2022 Summer
that would influence customers’ future capacity price, if it had occurred one
day later, in the June 1 through September 30 period utilities in PJM use for
Peak Load Contribution (PLC) calculations. WGL Energy issues alerts when PJM
load is forecast to be high enough to potentially be one of the 5 peaks. Commercial
customers wanting that information to try to lower their capacity obligation or
just to be informed of potential high system load, can contact their WGL Energy
Business Development manager. Currently there are no potential peak days
forecast in the near-term.