Infinity Insights – Volume 8, Issue 8
BIG WIN FOR DISCOVERY GREEN & GREEN MOUNTAIN ENERGY
Discovery Green is celebrating its first double-digit birthday with a giant green gift for its guests – two decades of pollution-free programming with 100 percent clean energy from Green Mountain Energy.Infinity Power Partners, a Houston-based energy management and consulting firm, has assisted Discovery Green in structuring and executing the sponsorship and commercial electricity contracts with Green Mountain since 2012.Our team is thrilled to be a part of this exciting partnership amongst all three parties. To read about the partnership from a recent press release, click here.
AT-A-GLANCE SUMMARY
Spot NYMEX natural gas held the 2.50ish support over the last two weeks..
SUMMARY OF THE LAST WEEK IN CHARTS
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Spot month natural gas (April) has support at 2.50 with resistance at 2.75 then 2.90 Calendar year 2019 has support at 2.73 with resistance at 2.85. Calendar year 2020 has support at 2.74 with resistance at 2.83.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.What’s This? – The “Roadmap” is the price action chart depicting the NYMEX natural gas spot month. It’s important because it is essentially the trading community’s market sentiment.What’s This? – “Cal 19” is the first complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.What’s This? – “Cal 20” is the second complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.
OUR TAKE ON THE MARKET
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Spot NYMEX natural gas held the 2.50ish support over the last two weeks. The action has been quiet. The back of the curve has followed a similar path. This in and of itself is interesting but finding a longer term bottom is work in progress.ERCOT power prices, on the other hand, have moved materially higher, not because of natural gas (feedstock) but rather heat rates (capacity). There is much discussion about reserve adequacy for summer 2018.(See http://www.infinitypowerpartners.com/capacity-concerns-in-ercot/ ). Since February 22nd, heat rates have climbed dramatically as the comparison of peak August 2018, 2019, and 2020 show:That’s a high $20/MW, low $30/MW increase and it’s only March. The luxury of time is quickly fading. For those who have locked previously, this confirms your prudent action. For those remaining open, this reminds you of the cost of inaction.