| Nine full days of the new Nodal ERCOT market are now behind us. The transition from Zonal to Nodal went very smoothly from a reliability perspective. We want to take this opportunity to give you a brief recap of what has happened price wise over the first nine days. |
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| The two tables below show the average price difference between Trading Hub and Load Zone. Positive numbers represent incremental costs to customers. Negative numbers represent incremental credits to customers. Houston and North have both had negligible differences in the prices between Trading Hub and Load Zones. South Load Zone has been averaging cheaper than the South Trading Hub. The West Zone continues to be the one zone to see significant premiums in the Load Zone. Some of this West Zone volatility can be attributed to short term transmission issues. However, it is likely some volatility will remain in the West for the immediate future due to the nature of the distributed renewable generation in West Texas. |
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| Day Ahead - Hub to Zone |
|
|
(Per MWh) |
| Houston |
$0.02 |
| North |
$0.00 |
| South |
($0.14) |
| West |
$1.02 |
|
| Real Time - Hub to Zone |
|
(Per MWh) |
| Houston |
$0.03 |
| North |
($0.05) |
| South |
($0.05) |
| West |
$2.98 |
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Attached you will find four graphs. One for each Zone in ERCOT (Houston, North, South, West). These are line graphs of hourly prices in ERCOT for both the Day Ahead Market and the Real Time Market. The market observed the Real Time Market clearing below the Day Ahead Market on Day One. However, as weather patterns shift this has not been a constant relationship as seen in the graphs. The table below shows average price differences between the Day Ahead and Real Time Markets. Positive numbers indicate the Day Ahead has average higher prices.
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|
| Hub – Day Ahead to Real Time |
|
|
(Per MWh) |
| Houston |
$2.27 |
| North |
$1.99 |
| South |
$2.38 |
| West |
$5.85 |
|
| Load Zone – Day Ahead to Real Time |
|
(Per MWh) |
| Houston |
$2.27 |
| North |
$2.05 |
| South |
$2.29 |
| West |
$3.89 |
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We hope to have a first look at RUC charges next week as the data begins to flow through the settlement extracts. We will provide some commentary based on our initial analysis. Please contact us if you have questions regarding the Nodal transition.
- GSE Management Team |