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Old 06-26-2009, 10:04 AM
 
Location: San Jose, CA
7,688 posts, read 29,152,138 times
Reputation: 3631

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Today's trading:

BLOOMBERG, FIRM ON-PEAK, DAY AHEAD SPOT/ERCOT HOUSTON Price: 171.34 Change: +93.64 +120.52%

What the hell is going on here? Is this actually tradable on the open market, or is this institutionals only?

Source: Bloomberg.com: Energy Prices
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Old 06-26-2009, 10:34 AM
 
28,455 posts, read 85,370,617 times
Reputation: 18728
Yes, you can buy juice on the spot market. Literally as power companies "fire up" expensive natural gas peaker plants to meet demand from A/C and other uses they RAISE rates to try to encourage large customers to "power down" power sucking industrial processes. Even retailers get in on this -- in my area the newer grocery stores will "go dim" as the A/C peak load pricing kicks in early afternoon.

When the "smart grid" is fully built out you too can experience this joy, and if you are as nuts as Bill Nye and Ed Begley Jr you will be able to remotely power down various loads in your home. I suppose if your clocks are all battery backed and the only thing you keep spinning is the compressor for your freezer you might actually save a few pennies...
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Old 06-26-2009, 10:49 AM
 
Location: San Jose, CA
7,688 posts, read 29,152,138 times
Reputation: 3631
Quote:
Originally Posted by chet everett View Post
Yes, you can buy juice on the spot market. Literally as power companies "fire up" expensive natural gas peaker plants to meet demand from A/C and other uses they RAISE rates to try to encourage large customers to "power down" power sucking industrial processes. Even retailers get in on this -- in my area the newer grocery stores will "go dim" as the A/C peak load pricing kicks in early afternoon.

When the "smart grid" is fully built out you too can experience this joy, and if you are as nuts as Bill Nye and Ed Begley Jr you will be able to remotely power down various loads in your home. I suppose if your clocks are all battery backed and the only thing you keep spinning is the compressor for your freezer you might actually save a few pennies...
My clocks are all battery backed.. and I have no A/C. My PG&E bills have been around $45. I'm just staggered at the differences from day to day.
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Old 06-29-2009, 01:35 AM
 
48,502 posts, read 96,848,488 times
Reputation: 18304
When they get that up;we will be paying for the infrastruture cost for years to come in high energy prices to pay for it as recovery cost. It will be higher than the fuel cost adjustments we see now.
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