Weekly Power Outlet US - 2024 - Week 42
Ohio-Data Center and Intel, Spot Natural Gas
Ohio-Data Center and Intel, Spot Natural Gas
Energy Market Update Week 42, brought to you by Acumen.
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This week AEP Ohio, along with consumers groups, staff at the Ohio PUC and data center players like Microsoft and Meta settle on a new tariff within Ohio. Basically, any new data center of 25 MW or higher will have to pay monthly 85% of their projected load regardless if they use it. Consumer groups and AEP have argued that consumers are taking on the brunt of new infrastructure needed to take on additional load. The PUC will still need to approve the settlement.
A quote from an article in Utility Dive summed up the consumer side of it. “In a landmark agreement, OCC, AEP, the PUCO staff and other consumers united to find a way to protect Ohio utility consumers from footing the bill for data center expansion in central Ohio,” said Maureen Willis, director of the OCC, which represents Ohio ratepayers. “Now it’s up to the five PUCO commissioners to do their part by adopting this broadly-supported, pro-consumer agreement.”
Speaking of Ohio and load, today Intel announced that they would be spending $28 billion to construct a fabricating facility just east of Columbus. Columbus has been part of some ambitious plans for Intel, with today laying out more detail. Ironically, this fab will be designed to produce AI chips after Intel and Amazon signed a production deal.
Since natural gas is the marginal fuel setting the prices for electricity, it stands to reason that gas sets the long-term price (futures) and near-term prices like the Day Ahead market. Since we are big "picture" guys, this "picture" from EIA says a lot. This is the snapshot of the range of spot prices from around the country this year. Spot prices help set the daily LMP (locational marginal price) for electricity. Given this chart, it's not hard to see why DA pricing has been muted.
NOAA WEATHER FORECAST
DAY-AHEAD LMP PRICING & SELECT FUTURES
RTO ATC, PEAK, & OFF-PEAK CALENDAR STRIP
DAILY RTO LOAD PROFILES
COMMODITIES PRICING
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