Energy Update - 06/06/2022 (Plain Text Version)
What a Difference a Day Makes
Week in review for May 29 - June 4, 2022
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.
For 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.
Significant 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.