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Bloomberg Energy Department

06/06 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                52.00       -8.00       49.00       60.00
 Ca-Or Border                60.00       -8.33       55.00       65.00
 NP15                        51.80       -23.47      45.00       60.00
 SP15                        64.79       -13.94      54.00       88.00
 Ault Colorado               52.50       -2.50       54.00       88.00
 Mead                        77.50       -2.50       70.00       85.00
 Palo Verde                  78.57       -13.11      62.00       105.00
 Four Corners                72.50       -18.50      70.00       75.00

Mid-Continent
 ECAR                        28.87       +4.74       26.71       30.00
  East                       30.00       +5.00       29.00       31.00
  AEP                        29.83       +5.91       25.00       32.00
  West                       27.17       +3.92       25.00       28.00
  Central                    27.31       +4.10       25.00       28.00
  Cinergy                    27.31       +4.10       25.00       28.00
  South                      28.00       +3.15       27.00       29.00
  North                      32.50       +7.00       31.00       34.00
 Main                        28.29       +3.65       26.00       31.25
  Com-Ed                     27.08       +3.81       25.50       28.50
  Lower                      29.50       +3.50       26.50       34.00
 MAPP                        23.92       +2.02       22.00       27.00
  North                      22.33       +1.66       20.00       27.00
  Lower                      25.50       +2.37       24.00       27.00

Gulf Coast
 SPP                         28.13       +3.13       26.50       30.13
  Northern                   24.25       +2.25       22.00       27.25
 ERCOT                       35.95       -2.68       35.50       36.50
 SERC                        34.84       +1.38       33.30       36.51
  Va Power                   33.50       +4.50       33.00       34.00
  VACAR                      32.00       +3.60       31.50       32.50
  Into TVA                   28.00       +3.15       27.00       29.00
  Out of TVA                 31.90       +3.13       30.99       33.05
  Entergy                    34.11       +0.42       33.60       35.00
  Southern                   38.50       +1.00       37.00       40.00
  Fla/Ga Border              45.83       -6.17       40.00       52.00
 FRCC                        60.00       -2.13       55.00       65.00

East Coast
 NEPOOL                      34.40       +0.35       34.25       35.00
 New York Zone J             48.50       -1.50       47.00       50.00
 New York Zone G             40.50       +1.70       39.50       42.50
 New York Zone A             28.63       +0.88       28.25       29.00
 PJM                         28.85       +1.25       28.25       29.75
  East                       28.85       +1.25       28.25       29.75
  West                       28.85       +1.25       28.25       29.75
  Seller's Choice            28.35       +1.25       27.75       29.25
End Table


Western Power Prices Continue To Fall Amid Increased Supply

     Los Angeles, June 6 (Bloomberg Energy) -- Day-ahead power
prices continued to fall today for Thursday parcels, as supply
continues to out-strip supply, traders said.
     The California Independent System Operator reported 6,247.89
megawatts of generation that was curtailed in California for
planned and unplanned maintenance, a decline of 49.9 percent from
a month ago.
     The Bloomberg Mid-Columbia day-ahead heavy load index price
slipped $8.00 a megawatt-hour to $52.00 amid trades at $49.00-
$60.00.  Off-Peak power fell $1.61, with trades completed from
$30.00-$35.00.
     According to Lexington, Massachusetts-based Weather Services
Corp., temperatures in San Francisco were expected to peak today
at 70 degrees Fahrenheit and fall 3 degrees tomorrow to 67
degrees.
     Forecasters expect temperatures in the Pacific Northwest
would average 4.3 degrees below normal and remain normal in the
Southwest over the next 6-10 days.
     At the NP-15 delivery point in Northern California, peak
power declined 30.6 percent from yesterday, with trades completed
at $50.00-$55.00, to a Bloomberg index at $52.25.
     "Prices are continuing to fall as dams are still generating
electricity from mountain run-off and generation is looking
healthier in California, topped with normal weather conditions,''
said one Northwest trader.
     At the SP-15 delivery point in Southern California peak
power declined $14.46 to a Bloomberg index low for the year at
$64.27, with sales completed at $54.00-$85.00, a decline of 84.2
percent from the average price for electricity during the week of
May 7.
     In the Southwest, power prices sank an average of $13.03 at
the Palo Verde switchyard to a Bloomberg average of $78.65 amid
trades in the $62.00-$105.00 range.
     Traders said they don't expect prices to remain this low.
Eventually power prices will firm up. There will be no more
snowmelt and temperatures will increase.


-Robert Scalabrino


PJM Spot Power Prices Rise With Higher Marginal Pool Rates

     Philadelphia, June 6 (Bloomberg Energy) -- Next-day power
prices in the Pennsylvania-New Jersey-Maryland Interconnection
rose again today on continued support from higher locational
marginal pool rates, traders said.
     While technical problems with the PJM software application
made LMPs unavailable during this morning's trading session,
traders said $40 prices seen yesterday afternoon were substantial
enough to carry through previous gains.
     Repairs to the "eSuite" system later revealed morning peaks
as high as $35.00, and an overnight spike of $107.00.
     On-peak power scheduled for Thursday delivery to the Western
Hub of PJM was assessed at a Bloomberg volume-weighted index of
$28.85 per megawatt hour, up $1.25 from yesterday.
     Today's move marked the fourth consecutive increase in day-
ahead values, though cumulative gains amounted to only $5.22, or
22.1 percent.
     Some marketers suggested prices were pushed higher to serve
as a cushion against an expected pull from today's American Gas
Association storage report, rather than as a function of
fundamental drivers.
     Analysts and traders surveyed by Bloomberg estimated on
average that U.S. working natural gas inventories increased 98
billion cubic feet during the week ended June 1. Estimates ranged
from 85 to 115 billion cubic feet injected.
     "A lot of people are anticipating a triple-digit injection
number," said one Northeast power trader. "Electricity has been
very closely tied to natural gas these past couple of weeks. So if
that number does in fact come in as high as expected, it's going
to have a bearish effect that will ripple throughout the power
markets."
     In the over-the-counter market, next-week packages sold $3.00
higher on revised weather forecasts. Parcels for June 11-15 were
discussed at $40.00-$41.00, compared to $37.00-$38.00 yesterday.
According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the Northeast will average 4.9 degrees Fahrenheit
above normal over the next 6-10 days. The weather forecaster
predicted yesterday, temperatures for the equivalent period would
average 2.4 degrees below normal.
     New England and New York day-ahead prices also moved higher,
though traders couldn't identify any fundamental reasons that
might have prompted those increases.
     "Gains made in New York and New England have to be financial,
possibly an attempt to narrow the spreads to PJM," one trader
said. "Next week should bring with it some warmer weather, but
there's absolutely nothing bullish about tomorrow's forecast."
     New England dailies were assessed 35 cents higher at an index
price of $35.90, while New York's Zones A and G were valued 88
cents and $1.70 higher, respectively, at $30.13 and $42.00
indices.

-Karyn Rispoli


Midwest Power Prices Rise With Transmission Concerns, Weather

     Cincinnati, June 6 (Bloomberg Energy) -- Peak next-day power
prices climbed today in the Mid-Continent U.S. as transmission
constraints surfaced in the East Central Area Reliability Council
and warmer weather was forecast in the southern Plains.
     ECAR traders said Transmission Line Loading Relief (TLR)
measures, which began in several areas this morning because of
the large amount of power being moved south from yesterday's
transactions, drove up hourly and day-ahead prices on concerns
they could continue tomorrow.
     The Bloomberg index price for power delivered Thursday into
the Cincinnati-based Cinergy Corp. transmission system climbed
$4.10 to $27.31 a megawatt-hour, with trades ranging from $26.50
up to $28.00.
     In Mid-America Interconnected Network trading, prices for
peak power at the Chicago-based Commonwealth Edison hub rose in
line with the Cinergy market, up $3.81 on average at $26.50-
$28.50. Power in lower MAIN sold $3.50 higher at $26.50-$34.00.
     MAIN traders said the ComEd market tracked prices at the
Cinergy hub and should continue to do so into next week, since
warmer weather was expected in Cincinnati than in Chicago.
     In the over-the-counter market, short-term prices rose today
as weather forecasts were revised warmer. Cinergy parcels for
delivery from June 11-15 were offered at $41.50, up from $37.25
late yesterday.
     Belton, Missouri-based Weather Derivatives Inc. predicted
high temperatures in Cincinnati would average 5 degrees
Fahrenheit above normal 6-10 days from now, compared to 2 degrees
below normal for that period yesterday.
     "Next week's still overvalued, even if it does warm up," one
ECAR trader said. "The entire market's long, and it'd have to be
over 85 for a week or so to see any heat buildup. I think $35 is
more than likely where dailies will be, not $40."
     Day-ahead peak power prices also rose in the Mid-Continent
Area Power Pool, trading up $1.66 in northern MAPP at $20.00-
$27.00 and up $2.37 at $24.00-$27.00 in the southern half of the
region.
     MAPP traders said forecasts for temperatures to reach 80
degrees in Nebraska pulled southern prices up, while sales to the
south and the higher-priced eastern hub markets pulled northern
values higher.
     They said the market could move up again tomorrow if
temperatures reach expected levels in southern MAPP.

-Ken Fahnestock


Most Southeast Power Prices Rise With Warmer Weather

     Nashville, Tennessee, June 6 (Bloomberg Energy) -- Most U.S.
Southeast spot electricity prices for delivery tomorrow rose
because of increased weather-related demand, traders said.
     Electricity parcels for delivery into the Tennessee Valley
Authority transmission grid traded at $27.00-$29.00 a megawatt-
hour, with the Bloomberg index price up $3.15 to $28.00.
     According to Weather Services Corp., of Lexington
Massachusetts, temperatures in Nashville were forecasted to peak
at 86 degrees Fahrenheit today and 83 degrees tomorrow.
     Forecasters predict temperatures in the Southeast to be 2.4
degrees above normal over the next 6-10 days.
     The Bloomberg Southeast regional average price increased
$1.38 a megawatt-hour from yesterday to a Bloomberg index of
$34.84 amid trades at $26.75-$29.00.
     "Prices are increasing as temperatures are rising causing
air conditioning load to boost,'' said one Southeast trader.
     On the New Orleans-based Entergy Corp. grid, peak power for
Wednesday delivery traded at $33.60-$35.00 and averaged $34.11,
42 cents higher than yesterday.
     In the Southern section of the Southwest Power Pool, peak
power increased $4.00 to a Bloomberg index of $32.00, with sales
completed at $31.00-$33.00.

-Robert Scalabrino


U.K. Spot Power Prices Drop as Major Players Sell Contracts

     London, June 6 (Bloomberg Energy) -- Power prices in the U.K
fell today on robust selling by several major players, traders
said.
     Day-ahead baseload was assessed at 17.50 pounds a megawatt-
hour, which was down 1.25 pounds or almost 7 percent from
yesterday.
     Although the majors sold contracts at lower levels, traders
reported strong buying support at those prices, preventing prices
from falling further.
     Weekend baseload power traded four times today between 16.60-
16.80 a megawatt hour, down 40 pence from yesterday.
     Winter 2001 electricity traded actively from the start of
trade, falling steadily from this morning at 21.57 pounds to 21.53
pounds, before dropping to trade at 21.40 pounds a megawatt hour
this afternoon.

-Armorel Kenna


Nordic Power Closes at Record Highs on Winter Supply Worries

     Lysaker, Norway, June 6 (Bloomberg Energy) -- Electricity
seasonal contract prices on the Nordic Power Exchange in Lysaker,
Norway, reached record highs today following renewed buying
interest for seasonal structures because of expected hydro-supply
shortages next winter, traders said.
     Winter-2, 2001 closed at an all-time high of 222.00 Norwegian
kroner a megawatt-hour after 394.00 megawatts were exchanged, up
1.50 kroner. Winter-1, 2002 jumped 3.50 kroner to close at a
record high of 227.50 kroner a megawatt hour, with 203.00
megawatts traded.
     "Yesterday the market sent a very clear technical buying
signal when year 2002 contracts closed at an all-time high of
191.75 kroner a megawatt-hour,'' a trader said, adding expected
winter supply shortages were affecting prices of yearly
structures.
     Today, year 2002 forwards rose further to a new record high
of 194.00 kroner a megawatt-hour, up 2.25 kroner.
     The larger gain by winter-1, 2002 than that of winter-2, 2001
came after worries of limited hydro-supply shifted from the last 3
months of 2001 to the first 4 months of 2002, a Trondheim, Norway-
based trader said earlier today.
     While abundant precipitation between September and November
could offset the limited effect that scarce snowmelt has had on
reservoirs this year, participants remained concerned that
increased power consumption for space heating between January and
April would render hydro-supply insufficient.
     On May 4, winter-2, 2001 closed at 206 kroner a megawatt-
hour, 1 kroner higher than winter-1, 2002, which closed at 205
kroner a megawatt-hour. "The spread between the 2 winter contracts
has now reversed from an unusual situation where winter-2, 2001
was valued higher than winter-1, 2002 a few week ago,'' another
trader said.
     Across Scandinavia, rainfall was forecast to remain above
average over the next 5 days, according to Weather Services Corp.
in the U.S. Still, actual precipitation was unlikely to even reach
normal levels, traders said.
     At the end of week 22, Norwegian dams rose in line with
expectations by 4.5 percent to 46.8 percent of total capacity,
equivalent to 38,265 gigawatt-hours generation, compared to 63.5
percent of total capacity or 51,918 gigawatt-hours at the same
time last year, according to Statistics Norway.
     Swedish reservoirs climbed 3.5 percent at the end of week 22,
to 49.8 of total capacity, compared to 61.9 percent a year ago,
according to the Swedish Power Association.
     Thursday's spot price unexpectedly rose 8.96 kroner to 222.83
kroner a megawatt-hour "because producers wanted to show that they
were presently in control of prices,'' a trader said.
Still, producers were reported "comfortable'' selling at
current "high'' prices, another trader said earlier today.
     Week 24 and week 25 rose 2.00 kroner. Week 24 closed at
212.00 kroner a megawatt-hour, while week 25 climbed to 207.75
kroner a megawatt-hour.
     A total of 3,301 gigawatt-hours generation traded on the
Nordic Power Exchange today, up from yesterday's 1,317 gigawatt-
hours.

-Alejandro Barbajosa
-0- (BES) Jun/06/2001 19:53 GMT



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