Saturday, February 18, 2017

Coal to Gas Switching in MISO, Beginning to Reverse?

Natural Gas usage for power generation in the MISO region continues to be much below 2016.

Back in November, gas was near 40% of the carbon power market in MISO, and well above the prior year as well.  With the price rise in late November, the situation reversed.  That situation was enhanced of course by low aggregate demand due to mild weather.  

With prices falling and now breaking through $3.00, it seems that gas will regain much of that lost market share, though probably not comparable to last year as prices were more like $2.00 then: