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US spot natgas costs hit record low in California, power rates remain negative

U.S. area gas costs in Southern California was up to a record low for Tuesday, while power in Arizona and California remained unfavorable amidst low energy demand over the Memorial Day holiday weekend and ample inexpensive hydropower and other sustainable supplies.

Negative costs signal there is excessive power or gas being produced in a region. Energy companies can either decrease output, pay someone to take their power or gas, or, if they can get a. license, flare undesirable gas.

Next-day gas prices at the Southern California (SoCal). Border << NG-SCL-CGT-SNL > slid to a record low of 92 cents per. million British thermal systems( mmBtu ), down from$ 1.20 before. the Memorial Day vacation weekend. That broke the prior SoCal Border all-time

daily low of.$ 1.14 per mmBtu set in June 2019, and compares with an average. of$ 1.58 so far in May, $2.53 up until now in 2024 and $6.78 in 2023. Next-day gas rates at the PG&E hub< NG-CG-PGE-SNL > in. Northern California,&meanwhile, fell to$ 1.63 per mmBtu, their. most affordable because June 2019. In the power market, next-day costs was up to a seven-week. low

of unfavorable$ 17.50 per megawatt hour( MWh) at the Palo Verde. center in Arizona and a four-week low of unfavorable <.$ 18.50 at South> Path-15< EL-PK-SP15-SNL > in Southern California. That compares to Palo

MWh so far in May, positive $18.79 up until now this year and favorable. $ 59.03 in 2023, and SP-15 averages of positive $3.25 per MWh so. far in May, favorable$ 18.89 up until now this year and positive$ 59.86. in 2023. U.S. next-day power and gas costs have turned negative. several times already in 2024, especially in Texas, Arizona and. California. Next-day power costs at Palo Verde in Arizona have averaged.

listed below zero 18 times up until now this year versus simply as soon as in the. past in 2019. SP-15 rates, which never ever balanced listed below zero. before this year, have actually already struck that mark 15 times.