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Bloomberg Energy Department

05/30 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                178.90      +74.46      145.00      212.00
 Ca-Or Border                178.33      +63.33      160.00      190.00
 NP15                        154.62      +32.77      150.00      200.00
 SP15                        173.80      +57.80      130.00      210.00
 Ault Colorado               130.00      +30.00      130.00      210.00
 Mead                        170.00      +35.50      150.00      170.00
 Palo Verde                  164.59      +37.38      135.00      235.00
 Four Corners                165.00      +45.00      160.00      170.00

Mid-Continent
 ECAR                        19.36       -1.14       17.64       21.43
  East                       23.00       -1.50       22.00       24.00
  AEP                        19.70       -0.60       17.50       23.00
  West                       17.33       -1.67       15.00       19.00
  Central                    17.61       -1.19       16.50       20.00
  Cinergy                    17.61       -1.19       16.50       20.00
  South                      17.67       -1.46       16.00       20.00
  North                      22.60       -0.40       20.00       24.00
 Main                        18.28       -1.49       16.00       21.50
  Com-Ed                     16.19       -2.81       14.00       19.00
  Lower                      20.38       -0.18       18.00       24.00
 MAPP                        22.38       -1.29       20.50       23.25
  North                      22.17       -1.12       20.00       22.50
  Lower                      22.60       -1.45       21.00       24.00

Gulf Coast
 SPP                         24.75       -9.11       23.75       26.50
  Northern                   23.50       -7.21       22.00       26.00
 ERCOT                       35.13       -2.96       32.75       37.00
 SERC                        29.02       +0.64       27.81       30.65
  Va Power                   23.13       -3.88       22.00       24.25
  VACAR                      23.50       -2.33       22.00       25.00
  Into TVA                   17.67       -1.46       16.00       20.00
  Out of TVA                 20.61       -1.51       18.89       23.02
  Entergy                    26.75       -8.33       25.00       30.00
  Southern                   40.00       +8.50       39.75       40.25
  Fla/Ga Border              51.50       +13.50      51.00       52.00
 FRCC                        56.25       +15.25      55.00       58.00

East Coast
 NEPOOL                      35.00       -3.25       34.50       35.50
 New York Zone J             48.75       -2.63       48.00       49.00
 New York Zone G             44.75       -2.75       44.50       45.00
 New York Zone A             34.75       -2.00       34.50       35.00
 PJM                         24.05       -3.90       23.50       24.50
  East                       24.05       -3.90       23.50       24.50
  West                       24.05       -3.90       23.50       24.50
  Seller's Choice            23.55       -3.90       23.00       24.00
End Table


Western Power Prices Jump as Hot Weather Propels Demand

     Portland, Oregon, May 30 (Bloomberg Energy) -- U.S. Western
peak power prices for delivery Thursday jumped amid expectations
for strong weather-related demand tomorrow, traders said.
     National Weather Service forecasts for the Portland, Oregon,
vicinity call for temperatures to approach 90 degrees Fahrenheit
tomorrow, up 12 degrees from today's projected high.
     "It's going to be very, very hot tomorrow," said one western
day-ahead power trader. "Frankly, I'm surprised that prices
didn't move even higher."
     The western trader said the fact that it's the end of the
month and cooler weather was expected for the weekend caused many
power marketers and utilities to buy the minimum energy required
to take them through tomorrow's peak demand periods.
     According to the California Independent System Operator,
demand in the state will peak tomorrow at 36,229 megawatts, up
588 megawatts from today's 35,641-megawatt forecast demand.
     At the NP-15 delivery point in Northern California, power
sales were noted between $150.00 and $200.00 a megawatt-hour,
with the majority of trades done at a Bloomberg index of $154.62,
$32.77 more than equivalent trades done yesterday for delivery
today. Light load NP-15 trades were heard at $62.00-$104.00,
$35.90 more than yesterday.
     "Everything just kept ticking up as more and more people
came into the market to buy," said one Northwest power trader
about today's next-day market activity.  "I think tomorrow will
trade lower though, because it's for a two-day (Friday-Saturday)
package and it's the beginning of a new month."
     Mid-Columbia power for June delivery traded at $245-$255 per
megawatt-hour, up from $220-$240 yesterday.
     In the Mid-Columbia cash markets, power for tomorrow started
trade at $145 and traded as high as $210 near daily options
expiry.
     Traders said the fact that the Grand Coulee reservoir is
near capacity at 12,709 feet of water was reassuring, though
continued load curtailments in California will be necessary to
keep prices from skyrocketing to the $500 a megawatt-hour level
like they did in early May.
     California traders said next-day markets were largely driven
by advancing prices in the hourly cash markets, where several
trades were noted in the $180-$200 range.
     At the Palo Verde switchyard in Arizona, power for tomorrow
averaged $164.59, $37.38 more than yesterday. Traders said
Phoenix temperatures in the 107-110 degrees Fahrenheit range were
expected to keep demand strong in the Southwest through the
weekend.

-Brian Whary


PJM Spot Power Prices Continue to Fall on Scant Demand

     Philadelphia, May 30 (Bloomberg Energy) -- Day-ahead power
prices fell again in the Northeast U.S. this morning, pulled
lower by continued expectations for minimal weather-related
demand and higher generation levels, traders said.
     According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the region will average 5 degrees Fahrenheit
below normal over the next seven days, keeping energy useage for
cooling 90 percent below normal.
     "These low temperatures just can't support a bull market,"
said one Northeast trader. "It's weighing heavily on the power
and [natural] gas markets alike. Too many megawatts, and not
enough heat."
     Nuclear Regulatory Commission data shows Northeast nuclear
output at 98 percent, with New England and New York both
operating at 100 percent capacity, and PJM at 96 percent.
     Next-day values in the Pennsylvania-New Jersey-Maryland
Interconnection fell $3.90 to a Bloomberg volume-weighted index
of $24.05 per megawatt hour and a new intra-month low.
     The daily index is 64.6 percent below the May high, $67.99,
reached May 2.
     Traders said next-week packages sold in mass, as revised
weather forecasts and plummeting natural gas values prompted many
to shed excess generation for that period. The June 4-June 8
block sold as high as $55.00 yesterday and as low as $40.50
today.
     June and summer strips traded down $8.00 and $5.00,
respectively, to $47.00 and $78.00.
     "They're trading the curve like we're going to see 70-degree
temperatures all summer," said one PJM-based trader.
"Temperatures are actually supposed to be near normal, and near
normal isn't all that bad.  You'll see some good cooling loads on
80-something degree days."
     Weather Services Corporation of Lexington, Massachusetts,
said in its long range forecast that the Northeast will see no
significant departures from normal temperatures throughout the
next 90 days. Normal high temperatures in Philadelphia during
June, July and August are 81, 86 and 84 degrees, respectively.
     New England day-ahead values slipped an additional $3.25, to
an index of $36.50, and in New York, Zone J traded as low as
$48.00, with an index price of $48.75.

-Karyn Rispoli


Mid-Continent Power Prices Drop Again; Mild Weather to Continue

     Cincinnati, May 30 (Bloomberg Energy) -- U.S. Mid-Continent
peak spot power prices continued to decline today as unseasonably
cool weather was expected to suppress demand through the weekend,
traders said.
     Bloomberg data shows day-ahead prices have declined to new
lows for the calendar year at major trading hubs eight of the
last nine days as temperatures across the region have ranged from
5-10 degrees Fahrenheit below normal.
     The Bloomberg index price for power delivered Wednesday into
the Cincinnati-based Cinergy Corp. transmission system fell $1.19
to $17.61 a megawatt-hour, with trades ranging from $16.50 up to
$20.00.
     East Central Area Reliability Council traders said prices at
the hub were so low activity was limited almost exclusively to
financial-based deals. They said the late price rise came as
marketers scrambled to cover earlier sales.
     "No utilities will mess with Cinergy at this point; it's
just too low for them to make any money," an ECAR trader said.
     Short-term over-the-counter prices also fell, as 6-10 day
weather forecasts were revised cooler, traders said. Cinergy
parcels for delivery from June 4-8 were offered about $18.00 less
than yesterday at $40.75 and power for the entire month of June
at $46.75.
     In Mid-America Interconnected Network trading, for-Thursday
parcels into the Chicago-based Commonwealth Edison hub sold $2.81
less on average at $14.00-$19.00 and power in lower MAIN 17 cents
less at $18.00-$24.00.
     MAIN traders said increased nuclear generation in the ComEd
service area drove prices at the hub to the lowest levels in the
region, as MAIN has the most nuclear capacity in the Mid-
Continent region and nuclear plants can produce electricity for
the lowest cost of any generator type.
     Mid-Continent Area Power Pool peak day-ahead power prices
fell an average of $1.12 in the northern half of the region to
$20.00-$22.50 and $1.45 in southern areas to $21.00-$24.00.
     MAPP traders said mild weather also pulled prices down in
that region, though exports to the Southwest Power Pool and the
lack of a financial market kept prices above those seen in
markets to the east.
     "I think we've bottomed out," one trader said. "Out here,
things can't go much under $20 or we're going be below cost."

-Ken Fahnestock


Most Southeast Power Prices Fall With Natural Gas, Mild Weather

     Atlanta, May 30 (Bloomberg Energy) - Most U.S. Southeast
spot electricity prices for power delivered Thursday declined
today because of falling natural gas prices and moderate
weather, traders said.
     The Bloomberg Southeast regional average price declined 17
cents a megawatt-hour from yesterday to a Bloomberg index of
$28.21 amid trades in the $16.00-$52.00 range.
     "There is no demand in this market. This market is driven
by the weather, and with milder temperatures and declining
natural gas, day-ahead power prices are falling,'' said one
Southeast trader.
     In Texas, traders said day-ahead firm "UB'' power in the
Electric Reliability Council of Texas sold at a Bloomberg index
of $35.13, falling $2.95 from yesterday. Trades were completed
in the forward market for June at $55.50.
     Traders said declining natural gas also cause prices to
fall.
     According to Bloomberg Energy Service surveys, Gulf Coast
natural gas prices averaged $3.59-$3.66 per million British
thermal units, 18 cents less than yesterday.
     According to Lexington, Massachusetts-based Weather
Services Corp., daily high temperatures in Richmond, Virginia,
were expected to reach 76 degrees Fahrenheit today and 78
degrees tomorrow.
     Forecasters call for temperatures in the Southeast to
average about 1.7 degrees Fahrenheit below normal over the next
seven days.
     In the Virginia-Carolina region, peak power declined $2.33
to a Bloomberg index of $23.50, with trades completed between
$22.00-$25.00.
     Traders said that prices should remain flat or decline for
the rest of this week, though prices should rise as weather
turns warmer next week.
     The Bloomberg index price for power on the New Orleans-
based Entergy Corp. grid for delivery tomorrow slumped $8.33 to
$26.75, with sales between $25.00-$30.00.
     In the Florida markets, prices rose as weather remained
warm and humidity high, increasing energy demand for air
cooling.
     "Even though temperatures in Florida are in the 80's, air
conditioning load is up because the humidity is unbearable,''
one Florida power marketer said.
     At the Florida Reliability Coordination Council, peak
power jumped $15.25, with trades confirmed between $55.00-
$58.00.

-Robert Scalabrino


U.K. Seasonal Contracts Rise on Profit Taking; Spot Values Drop

     London, May 30 (Bloomberg Energy) -- U.K. power prices for
seasonal delivery climbed today amid active trading as
participants sold contracts to take profit from an earlier rally.
"It was a traders market today. We started off with a rally
and then players came in to cut and take profit,'' one trader
said.
     Winter 2001 baseload last traded at 21.58 pounds a megawatt-
hour, 10 pence higher than yesterday.
     The contract traded as high as 21.66 pounds a megawatt-hour,
before participants began selling excess power, traders said.
     Another trader said around 6 participants were active in the
winter contract today, more than has been typical lately.
     Traders said other seasonal contracts also rose today, buoyed
by strong values for winter power.
     Summer 2002 baseload rose 10 pence from yesterday, having
last traded at 18.45 pounds a megawatt-hour.
     In contrast to the forward market, spot values fell today as
mild weather lessened heating demand.
     Week 23 parcels traded as high as 18.00 pounds a megawatt-
hour, before last trading at 17.75 pounds a megawatt-hour, 30
pence lower than yesterday.

-Amal Halawi


Nordic Power Steady in Afternoon Trade; Supply Worries Persist

     Lysaker, Norway, May 30 (Bloomberg Energy) -- Electricity
prices on the Nordic Power Exchange in Lysaker, Norway, closed
little changed today following continued worries of limited hydro-
supply after the publication of weekly water tank levels, traders
said.
     Winter-2, 2001 closed 0.25 Norwegian kroner lower after
146.00 megawatts were exchanged between 219.50-220.40 kroner a
megawatt-hour. Winter-1, 2002 closed at 221.00 kroner a megawatt-
hour with 71.00 megawatts sold.
     At the end of week 21, Norwegian reservoirs rose a lower-
than-expected 3.6 percent to 42.3 percent of total capacity,
equivalent to 34,559 gigawatt-hours generation. This compares to
49,572 gigawatt-hours or 60.7 percent of total capacity at the
same time last year.
Although precipitation across Scandinavia was forecast to
remain above average over the next five days, according to Weather
Services Corp. in the U.S., traders didn't anticipate increased
rainfall to compensate for limited snowmelt in Norway.
     Swedish dams gained 5.4 percent to 46.3 percent of total
capacity at the end of week 21, in line with expectations after
higher temperatures accelerated snowmelt.
     "Prices are just building momentum to climb further and I
wouldn't feel comfortable selling now,'' an Oslo-based trader said
earlier today. He added producers were still in control of the
market and were likely to continue setting high system area
average prices.
     While day-ahead structures were discussed at 210.00-213.00
kroner a megawatt-hour in early trade, Thursday's spot price
averaged an unexpectedly high 218.15 kroner a megawatt-hour, up
6.43 kroner from today's price.
     Week 23 closed down 0.75 kroner at 203.50 kroner a megawatt-
hour.
     Norpool's trade volumes climbed to 2,022 gigawatt-hours
generation today from 1,052 gigawatt-hours yesterday.

-Alejandro Barbajosa
-0- (BES) May/30/2001 19:50 GMT



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