Chelan PUD nets June gain in ‘negatively priced' power trading
Wenatchee World|Christine Pratt|July 15, 2010
The utility paid regional buyers $7,000 to take 1,300 megawatts of its surplus power in June, according to Gregg Carrington, managing director of energy resources. But other sellers paid the PUD about $20,000 to take their own surplus power, he said, for a net monthly gain of $13,000.
The utility paid regional buyers $7,000 to take 1,300 megawatts of its surplus power in June, according to Gregg Carrington, managing director of energy resources. But other sellers paid the PUD about $20,000 to take their own surplus power, he said, for a net monthly gain of $13,000.
WENATCHEE - The Chelan County PUD came out $13,000 ahead last month in its sales and purchases of market power at "negative" prices.
The utility paid regional buyers $7,000 to take 1,300 megawatts of its surplus power in June, according to Gregg Carrington, managing director of energy resources.
But other sellers paid the PUD about $20,000 to take their own surplus power, he said, for a net monthly gain of $13,000.
Negative pricing happens when supply exceeds demand for electricity, Carrington has said.
June mountain runoff swelled Columbia River flows through the utility's hydroelectric dams, while seasonal winds turned the region's wind turbines, creating such a surplus that market prices dipped into negative numbers.
All …
... more [truncated due to possible copyright]WENATCHEE - The Chelan County PUD came out $13,000 ahead last month in its sales and purchases of market power at "negative" prices.
The utility paid regional buyers $7,000 to take 1,300 megawatts of its surplus power in June, according to Gregg Carrington, managing director of energy resources.
But other sellers paid the PUD about $20,000 to take their own surplus power, he said, for a net monthly gain of $13,000.
Negative pricing happens when supply exceeds demand for electricity, Carrington has said.
June mountain runoff swelled Columbia River flows through the utility's hydroelectric dams, while seasonal winds turned the region's wind turbines, creating such a surplus that market prices dipped into negative numbers.
All utilities that buy and sell on the region's wholesale power market are affected, including Douglas and Grant County PUDs.
Negative pricing usually happens for periods at night, when energy demand is at its lowest, Carrington has said.