CPV Retail Blog January 11 -

New Product Offering

CPV Retail is excited to announce the launch of our new energy transition product – The Carbon Footprint Report.

Whether organizations are just beginning the sustainability journey or have well established climate goals and targets established, CPV Retail Energy as a “Greentailer” is a trusted renewable energy solutions provider. Regardless of where organizations are on the sustainability “learning journey”, or in the energy transition, we are focused on matching our unique set of renewable energy solutions to specific goals and objectives. The old saying “what gets measured gets managed” is especially true when it comes to realizing lower emissions goals. The Carbon Footprint Report is an important first step on this journey.

Please reach out to your contact at CPV Retail Energy for more information or contact us at retailinfo@cpv.com.

PJM Regulatory Review

Additional Agenda Items

PJM’s constituents continue to review suggestions on improving electric-gas coordination with rule change compromises. The recent impact of Winter Storm Elliott is almost certain to impact PJM’s dispatch philosophy into the teeth of additional severe cold weather coming this weekend and into next week.
PJM’s contemplated Tariff revisions which would separate the COMED territory into its own CONE area so it can incorporate applicable provisions of the Illinois Climate and Equitable Jobs Act.
The PJM power grid interconnection queue reform process continues to move forward and improve as PJM expects to clear about 26 GW of new connections.

Market Drivers

Energy Market Update

After suffering through the warmest December in the last 1000 years (slight exaggeration) the US is expected to be invaded by a major polar outbreak starting Friday and prices have reacted accordingly with PJM weekly on-peak prices trading close to $300/MWH. Balance-of-month gas prices in Chicago traded as high as $20/MMBTU. Don’t say whoa in a horse race!
Production freeze-offs are already occurring as domestic production has declined from by almost 4 BCF/D through January 10 and is expected to increase as the cold weather moves south and east.
Natural gas storage inventory balances in the US, Canada and Europe remain seasonally high and unless withdrawals are maintained at high levels for the balance of winter, summer prices are likely to experience downward pressure.
FERC’s 2024 priorities include reliability enhancements and electric transmission protocols but will only have 3 of 5 commissioners due to unfilled vacancies. The upcoming election could be key in seating new commissioners and overall policy guidelines.
Broad electrification implementation in Maryland could significantly increase peak loads but according to a study by the Maryland Public Service Commission the state’s utilities are well positioned to manage the increased load.
Signs are starting to indicate that production in the northeast might be rolling over as the year-over-year reduction in drilling begins to bite. After peaking near 38 BCF/D, Marcellus/Utica current production is sub 36 BCF/D which might help to support prices.
PJM will be tested again this coming week as a major arctic cold air outbreak invades the United States. After the experience from last year’s Winter Storm Elliott it is likely that PJM will be conservative in its dispatching of available thermal assets to ensure reliability of the grid.

Potpourri Comments

Mother Nature is reminding us this week that it can still get really cold in the winter. After experiencing the relentlessness of December’s warmth and watching the forward market trade down to ridiculously low levels volatility has returned with a vengeance. Of course, it is January and at the prices the market was imputing, one would have assumed that December’s weather was going to continue which of course it did not. The risk/reward was severely skewed to the upside given how far both the NYMEX and basis prices had fallen. Power prices followed the gas prices down and they too were at levels that dictated a bias to the long side even given extremely conservative trading philosophies. This is what makes involvement in the energy business so much fun and/or agonizing when you forget that you are dealing with the 2 most volatile commodities in the world…natural gas and electricity. This is also what yields tremendous opportunities to take advantage of the pendulum swings when prices overextend to the downside. Your CPV Retail Team is constantly evaluating forward prices and illuminating opportunities to lock in lower prices and provide the data driven support to our customers. Let us help you too! For