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Nymex June electricity

futures mixed

NEW YORK: Nymex June electricity futures settled mixed on the first-ever expiration day amid moderate power demand in the West and increasing rate of snowmelt in the Northwest, said industry sources.

"This is the first (expiration) of the contracts," said one New York broker. "You'll see disparity," referring to the difference between June Nymex and underlying cash prices.

June futures at the California-Oregon Border (COB) finished up 14 cents at $10.15 per megawatt hour (MWh) after hitting a low of $9.80 and a high of $10.40. July COB was settled at $11.95, while later months mostly ended lower.

In the physical markets, June COB was being talked in the $9.80-10.10 range, fairly steady from Friday, sources said. One June COB trade was reported at $10.05 but was unconfirmed.

Also in the physical markets, Mid-Columbia electricity was quoted at $7.75-8.00, down from Friday's range of $8.00-8.25, sources said.

June PV cash was pegged at $13.20-13.70, down from around $13.70 on Friday, sources said. July PV was seen near $15.70, while August/September physicals were discussed near $18.30, the sources said.

June PV ended the day down 80 cents at $12.45 per MegaWatt hour (MWh). The June PV contract had traded as high as $13.30 and as low as $12.20.

July PV settled down 20 cents at $15.60 after trading between $15.60 and $15.80. The other PV contracts ended the day mixed.

A Houston trader said the difference in June PV cash and futures was tied to hesitance of some participants. "No one wants to test the delivery mechanisms" at PV, he said.

July PV's sharp premium above June stemmed from expectation of above-normal temperatures in the West in July, a Midwest power marketer said.

In the East Coast physical markets, June PJM (Pennsylvania-New Jersey-Maryland pool) was being talked in the range of $24.50-25, while July/August was placed in the $31.50-32 range and September was put at $23.25-23.75, sources said.

NYMEX said COB's estimated contracts totaled 266, up from Friday's 177 and PV tallied 109 contracts, up from Friday's 53.-Reuter