CPV RETAIL BLOG

April 10, 2024

A recent quote at the Bloomberg Intelligence Summit from a cloud-computing executive supported the view that electricity demand is and will continue to increase rapidly. This executive stated that the world is “grossly” underestimating how much AI will expand the need for data centers and that they have received an “absurd” amount of data center requests over the last several quarters...

We Need More Power Part II

A recent quote at the Bloomberg Intelligence Summit from a cloud-computing executive supported the view that electricity demand is and will continue to increase rapidly. This executive stated that the world is “grossly” underestimating how much AI will expand the need for data centers and that they have received an “absurd” amount of data center requests over the last several quarters. Is the infrastructure in place to adequately manage this demand both from a generation view, but also from a transmission/distribution view?

Given that almost all the new generation additions are intermittent resources and these data centers require firm baseload power when will the lines cross on risk exposure to supply availability? If someone wanted to build a new gas-fired combined cycle power plant and they initiated the development process today, it would take years before that generator delivered power into the grid.

Retail buyers of power are thus exposed in the not-so-distant future at a time when prices are low due to the natural gas supply situation driven by back-to-back warm winters. This confluence of circumstances provides a fantastic opportunity for retail buyers to review their own integrated resource requirements and de-risk their procurement exposure.

This is exactly why working with the CPV Retail Team collaboratively to develop a medium to long-term plan today will yield opportunities to mitigate price risk in the future. Get ahead of the mob and let us develop a customized template tied to your needs, your views, your goals and your budget while prices are lower due to the impact of natural gas prices. Look ahead today!


We are excited to announce that Sarah DeVon has joined our team as Vice President of Sales. Sarah brings over 20 years of experience in energy sales, consulting, and origination.

PJM Regulatory Review

PJM Regulatory Review

  • PJM continues to respond to market participants regarding how energy efficiency fits in within the capacity market construct. “PJM is evaluating its next steps as concerns about measurement, verification, and delivery continue to persist.”
  • PJM posted the unofficial preliminary results of the 2024/2025 BRA re-run which as expected dramatically increased prices in DPL South. ($90.64/MW-day to $426.17 $/MW-day)

Market Drivers

Energy Market Update

  • Recent weekend cash prices continue to show weakness as the shoulder season is upon us and the system transitions to injections. Prices at WAHA continue to be negative while Houston Ship Channel prices are at lows not seen in a decade below $1.00/MMBTU.
  • Oil prices continue to rally as global demand continues to surprise to the upside and product inventories continue to draw down due to refinery availability issues. With Brent now above $90/BBL lower priced LNG is now a more compelling value for many Asian buyers and it is showing up as incremental sets a record for March deliveries.
  • US production has settled in around 101-102 BCF/D as gas-focused drilling reductions and natural shale-driven declines help keep production in check which will mitigate the likelihood of late injection season congestion.
  • Smaller wind and solar generators may become subject to NERC reliability standards if approval from FERC is received as is sought in the recent March 19 filing.

Forward Pricing

Renewable Energy