Fitch Publishes U.S. Wholesale Power Market Update.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has published a special report on the wholesale power market, focusing on the effects of ongoing price volatility in the U.S. natural gas markets. The report explains the addition of a 'High Gas Price Scenario' to Fitch's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. wholesale power market model. Two other scenarios running under the model are a Base Case and a Low Gas Price Scenario. Fitch's High Gas Price scenario assumes natural gas prices at Henry Hub Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC. averaging $5.50 in constant 2004 dollars. The Base Case scenario assumes that gas prices eventually decline, reverting to a longer term price trend of $3.60-$3.75, on average, in constant 2004 dollars. 'Higher gas prices and market volatility will likely be the norm for several years, with gas prices to be in the range of $4 to $6.50 per mmBtu,' says Ellen Lapson, Managing Director, Global Power, Fitch Ratings. Merchant coal plants are producing favorable cash flow in the current high gas price environment, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the report. While owners of both efficient and less efficient coal plants are currently profiting from high market clearing prices, the less efficient units would be at a competitive disadvantage relative to natural gas if prices fall to the level in the Fitch Base Case. Fitch's models demonstrate that the cash flows of less efficient coal units fluctuate more profoundly than those of efficient coal-fired generation with fluctuations in gas prices. Also in this report, Fitch provides updates on regional power markets, with developments at regional energy clearing markets in Texas, Northeast (PJM PJM Pacific Journal of Mathematics PJM Project Manager PJM Puerto Jimenez, Costa Rica (Airport code) PJM Pennsylvania New Jersey Maryland Interconnection LLC (Mid-Atlantic region power pool) , New England, and New York), and Midwest; asset sales transactions in the Southeast and Texas; and possible effects of the new Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. market power screens on the southeastern wholesale power market. The full report, 'Wholesale Power Market Update: Spotlight on Gas and Coal,' is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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