WECC power markets short-term outlook December 2014
Last winter, weather driven demand drove higher average natural gas prices across North America. This year, higher pricing and reliability challenges look to be less of a concern, as coal supply limitations look to be regionalized. Lower natural gas prices and coal retirements needed for MATS compliance promote more natural gas generation. Additionally, inter-regional gas on gas competition will ultimately provide an increase in market share for generators in the highest priced gas markets.