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US Power Update: Prices Vary Widely as PJM Tops Major Markets, MISO Turns Negative

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US electricity prices varied widely across major markets on Monday, with PJM posting $347.73 per megawatt-hour and the Midcontinent Independent System Operator the lowest at $68.38/MWh, according to GridStatus.io.

The Electric Reliability Council of Texas' real-time locational marginal price stood at $24.16/MWh at 4 p.m. ET. Net load was 39.6 gigawatts, while natural gas made up the largest portion of the generation mix at 31.1%.

The California Independent System Operator's real-time LMP came in at $16.27/MWh at 4 p.m. ET. Net load was negative 0.14 GW, with solar making up the biggest share of the generation mix at 69.2%.

Southwest Power Pool's real-time LMP was negative $2.50/MWh at 4 p.m. ET. Net load stood at 30.62 GW, while wind supplied the largest share of the generation mix at 37.5%.

SPP recorded an intraday low of negative $36.27/MWh at 5:45 a.m. ET before prices peaked at $107.49/MWh at 4:45 p.m. ET.

PJM Interconnection posted a real-time LMP of $31.28/MWh at 4 p.m. ET. Net load was 90.44 GW, with gas making up the largest share of the generation mix at 40.4%. Prices reached an intraday high of $347.73/MWh at 1:25 a.m. ET.

MISO's real-time LMP came in at -$64.31/MWh at 4 p.m. ET. Net load stood at 65.31 GW, while natural gas led the generation mix at 29.4%. Prices also fell to an intraday low of negative $68.38/MWh at 2:25 p.m. ET.

New York Independent System Operator's real-time LMP was $31.97/MWh at 4 p.m. ET. Net load reached 16.77 GW, with dual fuel accounting for the largest share of the generation mix at 27.5%. Prices rose to an intraday high of $93.17/MWh at 7:45 a.m. ET.

ISO New England recorded a real-time LMP of $30.04/MWh at 4 p.m. ET. Net load stood at 9.57 GW, while natural gas supplied the biggest portion of the generation mix at 33.1%.

Independent Electricity System Operator's real-time LMP was $35.50/MWh at 4 p.m. ET. Net load was 16.01 GW at 3:55 p.m. ET, with nuclear providing the largest share of the generation mix at 45.2%.

The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across much of the central, southern, and eastern US from Sept. 22-28, with near-normal conditions in parts of the West and Northeast.

What else is happening in Commodities?

Commodities

US Natural Gas Prices Snap 4-Week Winning Streak Amid Steady Supplies, Easing Weather Momentum

After four straight weeks in the green, US natural gas prices were down this week amid steady supplies and easing weather-related momentum.In the futures market, the Nymex front-month contract ended the week at $2.820 per million British thermal units on Friday, down from $2.939/MMBtu on Sep. 4.Natural gas spot prices declined to $2.81/MMBtu on Wednesday, down $0.07/MMBtu, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.This was primarily attributed to diverging regional weather, with cooler-than-average temperatures in the West helping offset above-average temperatures across Texas and the Midwest, leading to a 1.5%, or a 1.5 billion cubic feet per day decline in power consumption demand, according to data from S&P Global.Meanwhile, LNG export feedgas flows held steady at 19.6 Bcf/d, which was significantly above the 30-day moving average for this period, at 18.53 Bcf/d, according to the Bloomberg LNG Feedgas Model.Total gas supply remained mostly flat over the week, with a 0.4 Bcf/d, or 7%, decline in imports from Canada offset by a 0.4 Bcf/d, or less than 1% increase in domestic dry gas output.Net injection into storage for the week ended Sep. 4 was 40 Bcf, up from last week's 30 Bcf, bringing total working gas inventories to 3,254 Bcf, according to the EIA's weekly inventory data.The net build was ahead of forecasts at 35 Bcf but well below last year's 71 Bcf and the five-year average for this period, at 52 Bcf, according to data compiled by Investing.com, making it a fairly mixed storage build.At 3,254 Bcf, inventories were 148 Bcf, or 5% above the five-year average for this period, but 79 Bcf, or 2% below the same time last year.All regions reported a net injection during the week, barring South Central, which reported a net withdrawal of 7 Bcf. The East and Midwest led in injections, at 20 Bcf and 18 Bcf, respectively.According to Pinebrook Energy Advisors, the storage data shows that weather is set to play "a reduced role as a price driver" as September progresses and temperatures begin to moderate, that is, before winter makes landfall, leading to significant heating gas demand.A total of 36 LNG carriers departed US ports during the week, up by four from the prior week, with a total combined capacity of 137 Bcf, up 10 Bcf from last week.The US gas rig count increased by two from 130 the previous week to 132 in the week ending Sep. 11, according to data from Baker Hughes (BKR) released Friday. That compares with 118 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, increased by six to 798 from 792 the previous week.In international markets, European TTF gas prices averaged $25.47/MMBtu for the week ended Sep. 9, $1.59/MMBtu above the prior week. Meanwhile, the Japan-Korea Marker averaged $24.30/MMBtu, about $0.97/MMBtu above the prior week.Meanwhile, the EIA expects natural gas consumption in the electric power sector to reach a record in 2027 as electricity demand continues to grow, according to its monthly Short-Term Energy Outlook for July on Tuesday.The agency forecasts that natural gas use for power generation will increase by 2% in 2026 and by another 4% in 2027, to a record 38.1 Bcf/d. Monthly demand is expected to reach an all-time high of 50.6 Bcf/d in July 2027.Higher electricity demand, additional natural gas-fired generating capacity and relatively low natural gas prices will drive the increase, the EIA said.US gas-fired capacity is expected to reach 508 gigawatts by the end of 2027, up 3% from 2025.Summer natural gas demand for power generation is expected to average 42.2 Bcf/d this year, up 0.5 Bcf/d from summer 2025, before rising to 46.3 Bcf/d in summer 2027.Renewable generation will supply much of the increase in electricity output, while gas plants will continue to meet peak demand, according to the STEO.The EIA expects total US natural gas consumption to increase by 3.1 Bcf/d from 2025 to 2027, with the electric power sector accounting for 2.3 Bcf/d, or 7% of the increase.Weather remains the biggest uncertainty, as hotter summer temperatures could further boost electricity demand.Record Permian production should keep natural gas inventories above the five-year average and limit price gains, the agency said.Working gas inventories are expected to reach 3,966 billion cubic feet by the end of October, 5% above the five-year average.Above-average natural gas inventories heading into winter are expected to keep Henry Hub spot prices at $3.57/MMBtu in Q4 2026, down 5% from the same quarter a year earlier, the EIA said.EIA forecasts the Henry Hub natural gas spot price will ease to $3.43/MMBtu in 2026 and $3.28/MMBtu in 2027, down from $3.53 in 2025, as robust production growth outpaces rising demand.

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Commodities

Russia To Attend G20 Energy Abundance Ministerial in Houston

Russia will attend the G20 Energy Abundance Ministerial in Houston, Texas, as a G20 member, a White House official toldin an emailed response on Friday.The official also noted that Russia attended the Treasury G20 meeting in Asheville, North Carolina.The G20 Energy Abundance Ministerial will run from Monday through Wednesday, with Interior Secretary Doug Burgum, Energy Secretary Chris Wright and White House official Jarrod Agen among the US participants, according to a Reuters report Friday.Energy ministers from Europe and Asia are expected to join the Houston gathering. The European Union is entering winter with unusually low gas inventories, while its plans to reduce Russian energy dependence face setbacks, according to the report.

Commodities

US Natural Gas Update: Futures inch Down on Ample Supply, Milder Weather Outlook

US natural gas futures prices declined slightly in after-hours trade Friday, pressured by plentiful supplies and forecasts for moderating temperatures later this month.The front-month Henry Hub contract and the continuous contract each lost 0.49% to $2.820 per million British thermal units.In earlier trade on Friday, the October contract hit a low of $2.773/MMBtu before recovering.Forecasts of cooling temperatures put pressure on prices. Barchart, citing Commodity Weather Group data, said above-normal temperatures are expected across the South and Southeast through Sept. 20, supporting near-term demand, but most forecasters expect temperatures to cool thereafter.Aegis Hedging pegged average national temperatures at about 76 degrees Fahrenheit Friday, with readings expected to fall by 6 degrees or more in the second half of the month.Cooling demand and powerburn are expected to decline accordingly. Powerburn fell to 46.8 Bcf/d Friday from seasonally high levels of above 50 Bcf/d as temperatures began moderating across the northern US, Gelber & Associates said.Looking further ahead, heating demand may be muted this winter as NOAA's Climate Prediction Center raised the probability of a historically strong El Nino this fall, favoring above-normal temperatures across much of the northern US during winter 2026/27.On the export side, US LNG exports continued to support domestic gas demand. Barchart, citing BNEF data, said feedgas flows to US LNG terminals were near capacity at 19.8 Bcf/d, up 1.5% from the prior week. Annual maintenance at Cove Point LNG could reduce Appalachian feedgas demand by about 850 MMcf/d for up to three weeks from Sept. 19.US output and inventory levels kept the market amply supplied and pressured prices. Natural gas production remained elevated at 112.7 Bcf/d, keeping supply ample despite Canadian imports falling to 4.4 Bcf/d, Gelber said. BNEF said production was up 4.4% year over year.On Thursday, the US Energy Information Administration reported a 40 Bcf storage injection for the week ended Sept. 4, bringing total inventories to 3,254 Bcf, or 5% above the five-year average but 79 Bcf below year-earlier levels.RBC Capital Markets expects storage to peak near 3.9 trillion cubic feet this fall, about 120 Bcf above the 10-year average but 60 Bcf below last year's level. It forecasts a 35-40 Bcf injection in next week's EIA report, below the seasonal norm of 74 Bcf.