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Bloomberg Energy Department

06/04 Bloomberg Daily Power Report

Table

                      Bloomberg U.S. Regional Electricity Prices
      ($/MWh for 25-50 MWh pre-scheduled packages, excluding transmission costs)

                            On-Peak
West Coast                   Index       Change       Low         High
 Mid-Columbia                99.77       -68.36      98.00       100.00
 Ca-Or Border                102.50      -57.50      100.00      105.00
 NP15                        113.06      -46.76      115.00      140.00
 SP15                        107.50      -53.21      95.00       118.00
 Ault Colorado               100.00      -32.50      95.00       118.00
 Mead                        142.50      -43.50      140.00      145.00
 Palo Verde                  128.96      -58.45      111.00      140.00
 Four Corners                125.00      -53.33      124.00      126.00

Mid-Continent
 ECAR                        23.21       +1.37       21.96       24.39
  East                       25.00       +1.00       24.00       26.00
  AEP                        23.00       +1.25       20.00       25.00
  West                       22.00       +1.33       21.00       23.00
  Central                    21.39       +1.75       20.00       23.00
  Cinergy                    21.39       +1.75       20.00       23.00
  South                      25.18       +1.48       24.75       25.75
  North                      24.50       +1.00       24.00       25.00
 Main                        21.84       +0.79       19.50       23.00
  Com-Ed                     22.25       +1.58       21.00       23.00
  Lower                      21.43       +0.87       18.00       23.00
 MAPP                        21.75       -0.16       19.50       23.00
  North                      20.50       -0.63       20.00       21.00
  Lower                      23.00       +0.30       19.00       25.00

Gulf Coast
 SPP                         24.83       +1.70       24.00       25.50
  Northern                   21.17       +1.92       20.00       22.00
 ERCOT                       38.50       +0.50       38.00       39.00
 SERC                        32.04       +2.75       30.74       33.42
  Va Power                   25.00       -0.50       24.00       26.00
  VACAR                      28.00       +0.50       27.75       28.75
  Into TVA                   25.18       +1.48       24.75       25.75
  Out of TVA                 28.96       +1.38       28.40       29.44
  Entergy                    30.65       +2.65       30.25       31.00
  Southern                   36.50       +1.75       32.00       41.00
  Fla/Ga Border              50.00       +12.00      48.00       52.00
 FRCC                        62.00       +22.00      58.00       65.00

East Coast
 NEPOOL                      35.60       -1.90       34.50       36.00
 New York Zone J             47.50       -5.50       45.00       50.00
 New York Zone G             39.25       -6.50       39.00       39.50
 New York Zone A             28.25       -5.25       27.75       29.00
 PJM                         25.80       +0.29       24.75       26.75
  East                       25.80       +0.29       24.75       26.75
  West                       25.80       +0.29       24.75       26.75
  Seller's Choice            25.30       +0.29       24.25       26.25
End Table


Western Power Prices Fall Amid Increased Generation, Weather

     Los Angeles, June 4 (Bloomberg Energy) -- Western day-ahead
power prices sank today amid increased hydroelectric generation
from the Grand Coulee generating station and unit restarts, along
with mild weather, traders said.
     The Bloomberg Mid-Columbia day-ahead heavy load index price
slumped an average of $68.36 a megawatt-hour to $99.77 amid
trades at $98.00-$100.00. Light-load energy sold at $50.00-
$51.00, an average of $56.48 less than equivalent trades made
Friday for delivery today.
     Reservoir data from the U.S. Army Corps of Engineers shows
that at 1,276.3 feet of water, water levels at Grand Coulee are
about 98.9 percent of capacity.
     Traders said continued mountain run-off into the reservoirs
is causing dam operators to generate electricity to prevent
spilling water over the dam.
     At the NP-15 delivery point in Northern California, peak
power traded at $114.00-$140.00, declining $46.76.
     "Supply is continuing to out-strip demand, the weather is
mild and units are restarting causing more generation available,"
said one Northwest player.
     Southern California Edison Co. 1,080-megawatts San Onofre-3
nuclear plant located in San Clemente, California was confirmed
to be operating at 100 percent capacity, said company officials.
     According to Belton, Missouri-based Weather Derivatives
Inc., forecast temperatures in the Pacific Northwest would
average 3.5 degrees below normal over the next 6-10 days and 0.5
degrees above normal in the Southwest.
     In the Southwest, power prices sank an average of $58.45 at
the Palo Verde switchyard to a Bloomberg average of $128.96 amid
trades in the $111.00-$140.00 range.

-Robert Scalabrino


PJM Spot Power Prices Steady With Idled Market Conditions

     Philadelphia, June 4 (Bloomberg Energy) -- Next-day power
prices were little changed at the Western Hub of the Pennsylvania-
New Jersey-Maryland Interconnection this morning, as moderate
temperatures and abundant supply levels continue to depress
marginal pool rates.
     The Interconnection issued a Minimum Generation Alert for the
fourth consecutive day as generation levels fell below the 1,000-
megawatt threshold of normal minimum energy limits.
PJM operating instructions dictate that in situations of
excess capacity, deliveries into the control area are minimized
and where possible, sales to external control areas are arranged.
     "It's the same story, different day," said one PJM based
trader, of today's market. "Too many megawatts, and nowhere to put
them. There's just not enough demand out there."
     Locational marginal prices for the four hours leading up to
daily options expiration, or 10 a.m. local time, averaged $20.63
per megawatt hour, with a low and high of $14.00 and $31.00,
respectively. From 2 a.m. to 4 a.m., PJM distributed off-peak
power at no cost.
     Peak power scheduled for Tuesday delivery was assessed at a
Bloomberg volume-weighted index of $25.80 per megawatt hour, up
only 29 cents from Friday.
     "This unchanged market is definitely a bearish signal," said
one trader. "Monday typically trades up simply because loads
increase coming out of the weekend. When you can't get a small
rally on a Monday, you know you're in a bear market."
     Expectations for a continuation in the mild weather pattern
kept balance-of-the-week and next-week packages down as well, with
trades reported at $27.00 and $34.00, respectively.
According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the Northeast U.S. will average 4.0 degrees
Fahrenheit below normal over the next seven days, and 4.1 degrees
below normal over the next 6-10 days.
     Day-ahead values in the New York Power Pool fell across all
three zones, erasing gains made Friday. Traders said a generation
surplus has brought down clearing prices, and in turn next day
values.
     "Everyone's geared up for summer, with all their generation
available for dispatch, and we've got spring-like weather," said
one New York trader. "The imbalance is taking a severe toll on the
clearing prices."
     Zone J fell $5.50 to an index price of $47.50, while Zones A
and G slipped $5.25 and $6.50, respectively, to $29.75 and $47.50
indices.

-Karyn Rispoli


Midwest Spot Power Prices Get Boost From Southern Demand Surge

     Cincinnati, June 4 (Bloomberg Energy) -- Increased weather-
related demand in the lower Mississippi Valley pushed next-day
power prices higher throughout the Mid-Continent U.S., traders
said.
     The Bloomberg index price for power delivered Friday into
the Cincinnati-based Cinergy Corp. transmission system climbed
$1.75 to $21.39 a megawatt-hour, with trades ranging from $20.00
when the market opened, to $23.00 prior to daily options
expiration.
     "There's not a whole lot of weather up this way, but we are
feeling a pull from the south," said one Ohio-based trader. "The
Southeast is just about the only area east of the Rockies with
any cooling demand right now."
     While Weather Services Corp. of Lexington, Massachusetts,
forecast temperatures in Columbus, Ohio, to peak at only 74
degrees Fahrenheit tomorrow, it predicted temperatures in
Jackson, Mississippi, would reach as high as 82.
     In Mid-America Interconnected Network trading, for-Tuesday
power at the Chicago-based Commonwealth Edison hub sold $1.58
higher on average at a Bloomberg volume-weighted index of $22.25,
near parity with Cinergy, which typically trades at a premium.
     "[Dailies] are trading just above production level, so in
spite of these mild temperatures, there must be one or two buyers
out there," said one midwestern trader.
     Next-week packages at ComEd were also discussed higher, at
$36.00-$37.00, on expecations for warmer weather, though few
trades were executed.
     "They're framing it up higher, mostly in line with the
Cinergy market, but it's not really trading," one trader said.
"No one in this market seems anxious to lock in a position right
now; it's too early yet to tell what will happen over the coming
week. These forecasters have been awfully fickle lately."
     In the Mid-Continent Area Power Pool, traders said prices
were little changed with stable temperatures and limited trade,
falling 16 cents on average in northern areas to $20.00-$21.00,
while rising 30 cents on average to $19.00-$25.00 in southern
areas.
     "The phones just aren't ringing," said on MAPP trader.
"Until we see some extended heat, I suspect things will stay
quiet, and who knows when that will be."
     According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the North-central U.S. will average 4.5 degrees
below normal over the next 7 days, and 2.0 degrees below normal
throughout the next 6-10 days.

-Karyn Rispoli


Southeast Power Prices Rise Amid Forecasts for Warmer Weather

     Atlanta, June 4 (Bloomberg Energy) - U.S. Southeast spot
electricity prices for delivery Tuesday were mostly higher
today as forecasts called for higher temperatures, traders
said.
     Electricity parcels for Wednesday delivery into the
Tennessee Valley Authority transmission grid traded at $24.75-
$25.75 a megawatt hour, with a Bloomberg index rising $1.48
from Friday to $25.18.
     "Everything is up a little bit today, there is some warmer
weather in the South and loads are increasing," said one
Southeast trader.
     In the Nashville, Tennessee area, temperatures were
expected to reach 84 degrees Fahrenheit today, increasing to 85
degrees tomorrow.
     The Bloomberg Southeast regional average price increased
$2.75 from yesterday to a Bloomberg index of $31.07 amid trades
at $23.25-$52.00.
     Traders said the spread between prices in Southern SPP and
Northern SPP was because of zero available transfer capacity.
     In the Southern section of the Southwest Power Pool,
trades for Southern SPP increased $1.50 to a Bloomberg index of
$28.50, with sales completed at $28.00-$29.00. Northern SPP
increased $1.92, with trades between $20.00-$22.00.
     "Temperatures are high in the Florida markets causing air
conditioning load to increase," said one Southeast marketer.
     According to Lexington, Massachusetts based Weather
Services Corp., temperatures in Jacksonville, Florida were
expected to peak today at 97 degrees.
     The Bloomberg index price for peak next-day parcels at the
Florida Reliability Coordination Council jumped $22.00 to
$62.00 with trades completed at $58.00-$65.00.
     On the New Orleans-based Entergy Corp. grid, peak power
for Tuesday traded between $30.25-$31.00 and averaged $30.65,
$2.65 higher than Friday.

-Robert Scalabrino


U.K. Spot Power Prices Rise on Outage Concern, Scant Trade

     London, June 4 (Bloomberg Energy) -- U.K. power prices gained
ground today in quiet trade amid rumors of a power plant outage,
traders said.
     Day-ahead baseload traded as low as 16.75 pounds a megawatt-
hour, before rising to at 18.50 pounds a megawatt-hour, 1.5 pounds
higher than Friday's close.
     "Initially someone sold it (day-ahead) down as low as 16.75,
but there were a lot of natural buyers out there," one trader
said.
     Traders reported Connah's Quay, Powergen's 1,400-megawatt
combined-cycle gas turbine power plant had closed because of
technical problems, although this could not be confirmed.
     Week 24 traded 30 pence higher following trades at 17.10
pounds a megawatt-hour.
     September 2001 traded 10 pence higher on the back of the jump
in spot values, dealing at 19.70 pounds a megawatt-hour.
     In the forward market, prices were little changed in limited
trade.
     Winter 2001 reportedly traded 3 times before closing at 21.59
pounds a megawatt-hour, unchanged from Friday.

-Amal Halawi


Nordic Power Prices Gain Ahead of Holiday in Limited Trade

     Lysaker, Norway, June 1 (Bloomberg Energy) -- Electricity
prices on the Nordic Power Exchange in Lysaker, Norway, rose today
as participants purchased power in order to cover their contracted
requirements ahead of the long-weekend Whit holiday on Monday,
traders said.
     Week 23 closed at 206.18 Norwegian kroner a megawatt-hour,
gaining 2.18 after 297 megawatts traded. Week 24 jumped 3.5 kroner
to 210.50 kroner a megawatt-hour with 202 megawatts exchanged.
     Prices rose as participants bought contracts in an attempt to
close positions and minimize the risk of changing weather
conditions over the long-weekend, traders said.
     Scandinavian rainfall was forecast to remain above average
over the next 5 days, according to Weather Services Corp. in the
U.S. Still, worries about limited hydro-supply persist following
scarce snow accumulation and melting this year, traders said.
     Saturday's system area average price was set at 188.71 kroner
a megawatt-hour, 17.89 kroner lower than today's spot price,
because of lower industrial demand over the weekend. Traders said
the price was in line with expectations.
     Winter-2, 2001 rose 0.65 kroner to 220.25 kroner a megawatt-
hour after 89.00 megawatts were sold. Winter-1, 2002 jumped 1.25
kroner to 222.25 kroner a megawatt-hour.
     Traded volumes on Nordpool rose to 1,292 gigawatt-hours
generation today from 1,030 gigawatt-hours yesterday.
     Still, activity was lackluster, traders said as many
participants were away from their trading desks ahead of Monday's
holiday.
     The Nordpool Exchange will be closed on Monday June 4 and is
scheduled to reopen on Tuesday.

-Amal Halawi
-0- (BES) Jun/04/2001 19:46 GMT



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