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Bloomberg Energy Department

06/01 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                168.13      +18.13      160.00      175.00
 Ca-Or Border                160.00      +20.00      160.00      170.00
 NP15                        159.82      +10.89      160.00      175.00
 SP15                        160.71      +10.80      130.00      185.00
 Ault Colorado               132.50      -4.17       130.00      185.00
 Mead                        186.00      +1.00       180.00      192.00
 Palo Verde                  187.41      +12.45      175.00      215.00
 Four Corners                178.33      +4.04       170.00      185.00

Mid-Continent
 ECAR                        21.84       +1.49       19.86       23.86
  East                       24.00       +1.00       23.00       25.00
  AEP                        21.75       +1.25       18.50       24.00
  West                       20.67       +2.34       19.00       22.00
  Central                    19.64       +1.04       17.00       22.00
  Cinergy                    19.64       +1.04       17.00       22.00
  South                      23.70       +2.95       21.50       28.00
  North                      23.50       +0.83       23.00       24.00
 Main                        21.05       +1.74       18.50       23.00
  Com-Ed                     20.67       +2.61       19.00       23.00
  Lower                      21.43       +0.87       18.00       23.00
 MAPP                        21.91       +1.27       18.25       23.50
  North                      21.13       +0.13       17.50       23.00
  Lower                      22.70       +2.41       19.00       24.00

Gulf Coast
 SPP                         23.13       +1.63       22.00       25.00
  Northern                   19.25       -0.25       18.00       22.00
 ERCOT                       38.00       +1.25       37.00       39.00
 SERC                        29.29       +1.22       27.97       31.22
  Va Power                   25.50       +3.00       25.00       26.00
  VACAR                      27.50       +5.00       26.50       28.50
  Into TVA                   23.70       +2.95       21.50       28.00
  Out of TVA                 27.58       +3.03       25.31       32.02
  Entergy                    28.00       +1.21       27.00       28.50
  Southern                   34.75       +3.35       33.00       36.00
  Fla/Ga Border              38.00       -10.00      37.50       39.50
 FRCC                        40.00       -23.33      39.00       41.00

East Coast
 NEPOOL                      37.50       +1.60       37.25       37.75
 New York Zone J             53.00       +6.00       50.50       55.50
 New York Zone G             45.75       +3.50       45.50       46.00
 New York Zone A             33.50       +3.00       33.25       33.75
 PJM                         25.51       +1.88       24.75       26.50
  East                       25.51       +1.88       24.75       26.50
  West                       25.51       +1.88       24.75       26.50
  Seller's Choice            25.01       +1.88       24.25       26.00
End Table


Western Spot Power Prices Rise With Weekend Risk Premium

     Los Angeles, June 1 (Bloomberg Energy) -- Western day-ahead
power prices traded higher because of risk premiums, traders
said.
     The Bloomberg Mid-Columbia day-ahead heavy load index price
increased an average of $18.13 a megawatt-hour to $168.13 amid
trades at $160.00-$175.00. Light-load energy sold at $100.00-
$110.00, an average of $30.56 more than equivalent trades made
yesterday for delivery today.
     Traders said that power prices typically rise on Friday
because Monday begins a new week and demand for energy increases.
     "Prices also increase because there is some uncertainty of
what could happen over the next three days, a unit might trip or
the weather could suddenly change,'' said one Northwest trader.
      In the Southwest, power prices climbed an average of $12.45
at the Palo Verde switchyard to a Bloomberg average of $1187.41
amid trades in the $175.00-$215.00 range.
     Temperatures in Phoenix were forecast to reach 105 degrees
on Sunday and increasing two degrees to 107 degrees on Monday.
     Traders said this should keep power prices elevated at Palo
Verde and at the Four Corners trading point in New Mexico.
     Four Corners heavy load energy traded at a Bloomberg average
of $178.33, gaining $4.04 more than yesterday.
     According to Belton, Missouri-based Weather Derivatives
Inc., forecast temperatures in the Pacific Northwest would
average 4.0 degrees above normal over the next 6-10 days and 2.9
degrees above normal in the Southwest.

-Robert Scalabrino


Northeast Spot Power Prices Rise With Natural Gas, Weekend Risk

     Philadelphia, June 1 (Bloomberg Energy) -- Following a two-
week decline driven primarily by mild temperatures and healthy
generation levels, day-ahead power prices in the Northeast U.S.
rebounded this morning amid rising fuel costs and weekend risk
premiums.
     Traders said natural gas futures on the New York Mercantile
Exchange were "hardly bullish, but enough to spark a slight turn-
around" in the power market.
As of 1 p.m. local time, the Henry Hub front-month contract
traded as high as $4.000 per million British thermal units, which
is 8.6 cents greater than yesterday's close, yet 94.9 cents below
the contract's three-month historical average.
     "At this time of year, when generation is plentiful and
weather is a non-issue, power prices will jump on the most
insignificant of news," said one Northeast trader. "These
[natural] gas prices don't pose any threat, they just lend some
fundamental justification for a run-up."
     Peak power scheduled for Monday delivery to the Western Hub
of the Pennsylvania-New Jersey-Maryland Interconnection was
assessed $1.88 higher, at a Bloomberg volume-weighted index of
$25.51 per megawatt hour. While up on the day, next-day values
remain $18.75, or 42.4 percent, below the three-month historical
mean.
     In the New York Power Pools, next-day power prices climbed as
a function of weekend risk premiums. Traders said generators
typically place higher bids for Monday power because of the
uncertainties associated with speculating weather and load
forecasts 3 days in advance.
     Zone J was discussed at $53.00, though no trades were
reported. Zones A and G jumped $3.00 and $3.50, respectively, to
$35.00 and $47.25 indices.

-Karyn Rispoli


Southern Demand, Forwards Drive Midwest Spot Power Prices Up

     Cincinnati, June 1 (Bloomberg Energy) -- Prices rose today
for peak power delivered Monday in the Mid-Continent U.S. in line
with short-term over-the-counter values and demand from the
South, traders said.
     The Bloomberg index price for power delivered Friday into
the Cincinnati-based Cinergy Corp. transmission system climbed
$1.04 to $19.64 a megawatt-hour, with trades ranging from $22.00
when the market opened to $17.00 after options expired.
     "When the bal(ance of)-week market came out at $23-$24,
people tried to hold the dailies up at that level," an ECAR
trader said. "There just weren't any fundamentals there to
support the market though, so it crashed."
     In its seven-day forecast, Belton, Missouri-based Weather
Derivatives Inc. predicted high temperatures would average 7
degrees Fahrenheit below normal in Cincinnati.
     Traders said they expected cool weather to keep prices in
the low-$20 range through next week, while uncertain weather
forecasts limited price movement and activity in over-the-counter
contracts.
     "Weather forecasters are having trouble predicting things
three days out, let alone 30. Nobody wants to take any serious
positions because of it," one trader said.
     In Mid-America Interconnected Network trading, for-Monday
power at the Chicago-based Commonwealth Edison hub sold $2.61
higher on average at $19.00-$23.00 as exports to the west
increased, traders said.
     Power in the lower half of the region sold 87 cents higher
at $18.00-$23.00, also boosted by exports.
     In the Mid-Continent Area Power Pool, traders said prices in
northern areas were little changed with stable temperatures,
rising 13 cents on average to $17.50-$23.00, while southern MAPP
spot prices climbed $2.41 to $19.00-$24.00 with demand from the
Southwest Power Pool.
     Peak Monday power in SPP sold at $18.00-$28.00, up $1.63 on
average from yesterday.
     "A little bit of stuff going south is all that propped
things up today," a MAPP trader said. "With things this cool
though, we're not going to see much of a market anytime soon.
Heck, I had to use the heater in my car this morning."

-Ken Fahnestock


Most Southeast Power Prices Rise Amid Weekend Risk, Weather

     Atlanta, June 1 (Bloomberg Energy) - U.S. Southeast spot
electricity prices for delivery Monday were mostly higher today
because sellers expected a premium price to sell power three
days in advance, traders said.
     Peak power for Monday delivery into the Tennessee Valley
Authority transmission grid traded at $21.50-$28.00 a megawatt
hour, with a Bloomberg index rising $2.95 from yesterday to
$23.70.
     "Prices are rising because it's a typical Monday, prices
usually fall on the weekend because of businesses and schools
closed, and then trade higher for Monday with everything re-
opening,'' said one Southeast marketer.
     In the Nashville, Tennessee area, temperatures that were
to reach 73 degrees Fahrenheit today, were expected to rise to
82 degrees for Monday.
     The Bloomberg Southeast regional average price gained 56
cents from yesterday to a Bloomberg index of $28.63 amid trades
at $21.50-$39.50.
     Traders said that Entergy was purchasing power from the
Southwest Power Pool and paying premium prices because of
transmission constraints along with zero availability
transmission capacity.
     In the Southern section of the Southwest Power Pool,
trades for Southern SPP increased $3.50 to a Bloomberg index of
$27.00, with sales completed at Entergy between $26.00-$28.00.
     Forecasters call for temperatures in the Southeast to
average about 1.9 degrees Fahrenheit below normal over the next
seven days.
     On the New Orleans-based Entergy Corp. grid, peak power
for Monday traded between $27.00-$28.50, and averaged $28.00,
$1.21 higher than yesterday.
     "Power prices next week will depend on what the weather
related demand is,'' said one Southeast marketer.
     In the Virginia-Carolina region, peak power increased
$5.00 to a Bloomberg index of $27.50, with trades completed
between $26.50-$28.50.

-Robert Scalabrino


U.K. Short-Term Power Prices Fall on Increased Selling

     London, June 1 (Bloomberg Energy) -- U.K. power prices
tumbled in lackluster trade today as participants sold contracts
deemed over-valued, traders said.
     July baseload traded 20 pence lower following trades at 17.55
pounds a megawatt-hour. August baseload traded at 17.60 pounds a
megawatt-hour, 25 pence lower than yesterday.
     "If you've got day-ahead trading at 17 pounds in May, then
people are thinking July and August are definitely over-priced,"
one trader said.
     Participants, unsure of new price levels following the New
Electricity Trading Arrangements sold the summer month contracts
today as they compared them to lower day-ahead and week-ahead
prices, traders said.
     Day-ahead baseload for Monday last traded at 17 pounds a
megawatt-hour, 1 pound lower than yesterday.
     The contract fell on expectations temperatures, expected to
fall over the weekend, would begin to rise again on Monday,
stifling heating demand, traders said.
     Week 23 traded 70 pence lower than yesterday following trades
at 17 pounds a megawatt-hour.
     Traders said the Sizewell B power plant restart delay had
little impact on prices amid sufficient supply.

-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/01/2001 19:17 GMT



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