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Bloomberg Energy Department

05/16 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                128.78     -107.65      135.00      150.00
 Ca-Or Border                140.00     -106.67      135.00      145.00
 NP15                        153.42      -87.75      144.00      163.00
 SP15                        139.67      -73.33      135.00      145.00
 Ault Colorado               125.00      -70.00      135.00      145.00
 Mead                        150.00      -82.50      149.00      151.00
 Palo Verde                  150.92      -72.20      133.00      180.00
 Four Corners                147.50      -72.50      140.00      155.00

Mid-Continent
 ECAR                        45.44       +4.28       41.86       49.00
  East                       44.50       +4.50       43.00       46.00
  AEP                        47.00       +5.80       42.00       50.00
  West                       44.50       +3.50       42.00       46.00
  Central                    46.25       +6.11       42.00       50.00
  Cinergy                    46.25       +6.11       42.00       50.00
  South                      44.57       +0.24       40.00       53.00
  North                      45.00       +3.67       42.00       48.00
 Main                        46.21       +2.63       43.00       49.00
  Com-Ed                     43.75       +2.46       40.00       46.00
  Lower                      48.67       +2.79       46.00       52.00
 MAPP                        52.50       +0.67       50.00       55.00
  North                      52.00       +1.00       50.00       55.00
  Lower                      53.00       +0.33       50.00       55.00

Gulf Coast
 SPP                         50.13       +0.13       46.75       53.50
  Northern                   51.00       +0.00       46.00       56.00
 ERCOT                       53.50       -4.13       52.00       55.00
 SERC                        47.77       +0.39       43.95       52.51
  Va Power                   42.00       -1.50       41.50       42.50
  VACAR                      48.33       +2.08       45.00       50.00
  Into TVA                   44.57       +0.24       40.00       53.00
  Out of TVA                 48.28       -0.57       43.64       57.04
  Entergy                    49.73       -0.02       45.00       55.00
  Southern                   47.75       +1.25       45.00       50.00
  Fla/Ga Border              53.75       +1.25       47.50       60.00
 FRCC                        57.50       +0.07       50.00       65.00

East Coast
 NEPOOL                      50.50       -0.25       50.00       51.00
 New York Zone J             56.00       +0.25       55.00       57.00
 New York Zone G             49.25       -0.55       48.00       50.50
 New York Zone A             37.25       -1.25       36.50       38.00
 PJM                         38.80       +0.65       38.00       40.00
  East                       38.80       +0.65       38.00       40.00
  West                       38.80       +0.65       38.00       40.00
  Seller's Choice            38.30       +0.65       37.50       39.50
End Table


Western Spot Power Prices Sink Amid River Runoff, Mild Weather

     Portland, Oregon, May 16 (Bloomberg Energy) -- Western U.S.
peak spot power prices for delivery tomorrow plummeted as
hydroelectric operators were forced to generate power, traders
said.
     At the Mid-Columbia trading point in Washington, peak power
declined 38.4 percent from yesterday to a Bloomberg index of
$140.55 a megawatt hour, with executed trades between $135.00-
$150.00.
     "Run-off is increasing hydroelectric supplies," said one
Northwest trader.
     Traders said that smaller dams in the Portland area don't
have the capability to store excess water from mountain snowmelt,
so they have to generate power or spill water.
     "The weather is mild in the Northwest, causing snow melt to
run off into the reservoirs," said one Northwest trader.
     According to Weather Services Corp., of Lexington,
Massachusetts, temperatures in Portland, Oregon were expected to
reach 63 degrees Fahrenheit today, increasing tomorrow 2 degrees
to 65 degrees.
     At the California Oregon Border, day-ahead peak power sank
$106.67 to a Bloomberg index of $140.00. Traders completed trades
in the $135.00-$145.00 range.
     In the Pacific Northwest, federal power marketer Bonneville
Power Administration offered up to 200 megawatts of delivered
energy for tomorrow at the Dow Jones Mid-Columbia and California-
Oregon Border firm electricity index price.
     At the Palo Verde switchyard in Arizona, peak power slipped
$72.20, to a Bloomberg index of $150.92 as traders executed
transactions in the $140.50-$150.00 range. Traders said they sold
off-peak power as low as $21.00 and as high as $40.00.
     Traders said that Arizona Public Service Co.'s 1,270-
megawatt Palo Verde 1 nuclear plant in Wintersburg, Arizona,
increased production 20 percent from yesterday to 70 percent of
capacity following the completion of a scheduled refueling outage
that began March 31.
     At the SP-15 delivery point in Southern California, peak
power slumped $73.33 to a Bloomberg index of $139.67 amid trades
in the $135.00-$145.00 range.

-Robert Scalabrino


Northeast Spot Power Prices Steady Amid Idle Market Conditions

     Philadelphia, May 16 (Bloomberg Energy) -- Spot power prices
in the Northeast U.S. were little changed this morning, amid
expectations for continued increases in available generation and
stagnant cooling loads, traders said.
     According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the Northeast will average within one degree
Fahrenheit of normal over the next seven days, keeping heating and
cooling demands 89 and 97 percent below normal, respectively.
     In the Pennsylvania-New Jersey-Maryland Interconnection, peak
power scheduled for Thursday delivery was assessed 65 cents
higher, at a Bloomberg volume-weighted index of $33.80 per
megawatt hour.
     Traders said tomorrow's projected load requirements and
generation outages were virtually unchanged, leaving little room
for movement in the day-ahead market.
     The Interconnection projected loads for the first six on-peak
hours of tomorrow to average just 100 megawatts greater than
today, and increases in available generation were estimated at
only 23 megawatts.
     The next-week market was volatile however, as revised weather
forecasts, calling for cooler temperatures, left many marketers
scrambling to readjust positions.
     "The weather forecast for next-week has been drastically
revised," said one PJM-based trader. "Anyone holding excess power
for that period was looking to unload it this morning, and the
market just fell out of bed from there."
     Traders said early morning trades topped out at $48.00,
before trailing off to lows in the $40.00-$41.00 range.
     In the New England Power Pool, day-ahead power sold 25 cents
lower amid trades in the $51.50-$52.50 range, with most deals
executed at $52.00.
     Entergy Corp. said it began the process of restarting its
670-megawatt Pilgrim 1 nuclear reactor at 3:07 a.m., although
traders agreed the additional megawatts didn't affect tomorrow's
market.
     "It's not a very big unit, so a minimal increase in
production isn't going to make a noticeable difference," said one
Northeast trader. "I'm sure it will be reflected in tomorrow's
day-ahead market, when output will be closer to capacity."
     Next-week packages traded heavily in New England, as they did
in PJM, though prices for the 5-day block there remained firm at
$55.00. Traders said heavy purchases from one of the region's load
serving entities might have helped support the market, by
offsetting forecasts for cooler temperatures.
     Temperatures in Boston, one of New England's primary load
centers, are forecast to average less than 60 degrees through the
early part of next week.

-Karyn Rispoli


Southeast Demand Again Drives Mid-Continent Power Prices Up

     Cincinnati, May 16 (Bloomberg Energy) -- Continued high
weather-related demand from the Southeast and a combination of
unit outages and transmission problems in the Midwest drove Mid-
Continent peak power prices up again today, traders said.
     East Central Area Reliability Council prices rose for the
fourth consecutive day as heavy weather-related demand from the
Tennessee Valley Authority grid continued, traders said.
     The Bloomberg index price for day-ahead power delivered into
the Cincinnati-based Cinergy Corp. transmission system rose $6.11
to $46.25 a megawatt-hour and has gained almost $19.00 this week.
Trades ranged from $44.50 up to $50.00 after options expiration.
     Cinergy traders said the late price rise came as marketers
oversold to TVA and had to buy power back from there to cover
short positions.
     In contrast to the daily market, short-term over-the-counter
prices dropped, with power for Friday delivery offered $2.00 less
than yesterday's price for Thursday-Friday parcels at $41.00 and
power for delivery from May 21-25 offered $7.00 less at $40.50.
     "There's a new weather forecast out, and it's going to be a
lot cooler next week now than we originally thought," one trader
said. "I wish I'd sold myself way short on the next week package
yesterday, but what can you do?"
     In Mid-America Interconnected Network trading, peak power at
the Chicago-based Commonwealth Edison hub sold $2.46 higher on
average at $40.00-$46.00 and power in the lower half of the
region $2.79 higher on average at $46.00-$52.00.
     MAIN traders said transmission constraints all but
eliminated the ability to sell power west into the Mid-Continent
Area Power Pool, causing market focus to shift to the South and
East.
     With several unit outages and transmission problems,
continued hot weather and imports from MAIN unavailable, day-
ahead power prices in MAPP were the highest in the region again
today, traders said.
     Next-day power sold $1.00 higher on average in northern MAPP
at $50.00-$55.00 and 33 cents higher in the southern half of the
region at $50.00-$55.00. Traders said activity was limited, as
most utilities had no excess power available.
     "It's still in the 80s (degrees) here, which is much hotter
than we're used to this early in the year," one trader said. "Add
to that these unit outages, and you get what we have right now; a
pretty big mess."

-Ken Fahnestock


Southeast Power Prices Mixed as Recent Heat Moderates

     Atlanta, May 16 (Bloomberg Energy) -- U.S. Southeast spot
electricity prices were mixed today as several major regional
population centers expected cooler weather tomorrow, while
others expected weather to remain hot, utility traders said.
     The Bloomberg Southeast Electric Reliability Council
regional index price rose an average of 39 cents a megawatt-
hour from equivalent trades made yesterday for delivery today,
to $47.77, amid trades in the $36.50-$60.00 range.
     Forecasters from Lexington, Massachusetts-based Weather
Services Corp. predicted daily high temperatures in the Atlanta
vicinity would peak tomorrow at 87 degrees Fahrenheit,
unchanged from today's projected high.
     In sections of the Southwest Power Pool, tomorrow's
projected highs for Topeka, Kansas, were expected to decline to
the high-70s to low-80s tomorrow, utility traders said.
     "There was not a lot of trading done in the next-day
markets because we expect to see a break in the weather," said
one SPP-based utility trader. "Our temperatures, which are
expected to hit the 92-94 degree mark today, will decline to
about 10 degrees below normal tomorrow."
     According to Belton, Missouri-based Weather Derivatives
Inc., cooling demand across the Southeast was expected to
average about normal over the next week.
     Over the next 6-10 days, temperatures in the Southeast are
expected to average 3.1 degrees below normal, the forecaster
said.
     On the Tennessee Valley Authority grid, power for tomorrow
traded in a "broad" range of $40.00-$53.00, though the majority
of energy trades were reported at a Bloomberg index of $44.57,
24 cents more than yesterday.
     Expectations for continued warm weather on the U.S. Gulf
Coast and troubling transmission line loading relief measures
between sections of southern Mid-Continent Area Power Pool and
the northern SPP, kept Entergy Corp. prices from falling,
traders said.
     The Bloomberg day-ahead peak Entergy index fell 2 cents
from yesterday to $49.73 amid trades in the $45.00-$55.00
range.
     Traders said prices could dip tomorrow in the Gulf Coast
region because natural gas futures for June delivery on the New
York Mercantile Exchange were slipping. June futures declined
28.3 cents per million British thermal units to $4.38 per
million Btu.

-Brian Whary


U.K. Winter Power Contracts Little Changed in Heavy Trade

     London, May 16 (Bloomberg Energy) -- Winter 2001 power prices
in the U.K. closed little changed today, although the contract was
unusually active, traders said.
     Winter 2001 baseload was last assessed 10 pence lower at
21.30-21.40 pounds a megawatt-hour.
     Although Winter 2001 traded over 60 times, one trader said
the contract traded "range-bound'' throughout the day, as
participants purchased and sold the contract in an effort to
create liquidity in the market.
     "Its unprecedented for over 800 megawatts to have traded and
we've seen little change. It's evident a player out there is very
keen to get liquidity going in the market,'' another trader said.
     Traders said the two major trading houses that have been
trading the contract aggressively over the past week were the main
market participants again today.
     Day-ahead prices tumbled today even though reports of outage
problems persisted, traders said.
     British Energy's Sizewell B nuclear plant was reported to
have shut for maintenance last Friday because of an acid leak,
although this couldn't be confirmed.
     "The spot market continued to be volatile. We are still
seeing a lot of panic buying and selling,'' one trader said. "It
seems people must have overbought in preparation for these planned
outages and now need to sell.''
     Day-ahead baseload started trade at 23.50 pounds a megawatt-
hour, before plummeting to trade at 18.00 pounds a megawatt-hour,
5.00 pounds lower than yesterday.

-Amal Halawi


Nordic Electricity Prices Close Higher on Elevated Spot Value

     Lysaker, Norway, May 16 (Bloomberg Energy) -- Electricity
prices on the Nordic Power Exchange in Lysaker, Norway, rose in
active afternoon trade after generators set tomorrow's spot price
above expectations, traders said.
Participants rushed to close positions ahead of a Norwegian
holiday tomorrow that will keep the market closed. Nordpool is
scheduled to re-open on Friday.
     Winter-2, 2001 jumped 1.75 kroner a megawatt-hour to close at
a record high of 218.25 kroner a megawatt-hour with 449.00
megawatts exchanged. Winter-1, 2002 gained 2.10 kroner after
166.00 megawatts traded between 216.00-218.75 kroner a megawatt-
hour.
     Although industrial end-user demand was anticipated to drop
tomorrow as Norway celebrates Constitution Day, Thursday's system
area average price was set at 195.41 kroner a megawatt-hour, more
than 10 kroner above traders' expectations of 185.00 kroner a
megawatt-hour and down 2.97 kroner from today's price.
     Producers in western Norway retained control over inflowing
molten snow, pushing prices higher, an Oslo-based trader said. The
minimum hourly spot price in Trondheim, Norway was set at 190.88
kroner a megawatt-hour, only 4.53 kroner lower than the system
area average price.
     Nordpool reported an expected 2.5 percent increase in
Norwegian reservoirs to 34.7 percent of total capacity at the end
of week 19 from the previous week, compared to 49.9 percent of
total capacity a year ago. In Sweden, reservoirs were up 7.9
percent to 33.2 percent of total capacity, beating expectations of
a 5.2 percent gain.
     Snowmelt in Norway was likely to peak in the next ten days,
delaying water tank refilling, while in Sweden it peaked last
week, traders said.
     Limited snow accumulation in the important hydro-producing
region of western Norway has also minimized the effect of
anticipated supply increases.
     In the shorter-term, week 21 closed 1.50 kroner higher at
195.00 kroner a megawatt-hour after a total 286.00 megawatts
traded as low as 190.75 kroner a megawatt-hour. Week 22 jumped
5.00 kroner a megawatt-hour to 204.00 kroner a megawatt-hour.
     Total volumes more-than-quadrupled in afternoon trade to
3,717 gigawatt-hours generation compared to this morning's 738
gigawatt-hours.

-Alejandro Barbajosa
-0- (BES) May/16/2001 19:32 GMT



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