Clarity Grid Blog

Insights and analysis of the electric grid, wholesale prices, and the electricity markets.

Wholesale Power Prices Slide 10-20%

As analyst probe usage statistics to determine the effects of the Coronavirus Pandemic on electricity demand, the longer-term trends of declining power bills for residential and commercial customers remain intact. We synthesized 12 months of bills for select cities in deregulated markets from September 2019 through April 2020 and In all samples prices ranged from almost...

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Real Time Heat Map

Kevin P Hannon March 11, 2020 Each of the 7 US Independent System Operators (ISOs) establish daily or hourly pricing for the markets they serve by balancing supply and demand at over 60,000 pricing points across the US.  This process, called Security Constrained Economic Dispatch (SCED), begins at the lowest physical levels of the electric grid where substations for...

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Electricity Tariffs

Deregulation of electricity markets is determined at the State level in the US. Currently 15 states (30%) provide for at least some, or all, customer classes to purchase power on a deregulated basis. However, because this group includes the relatively populous states of New York, Texas, and Illinois the percentage of the market which is deregulated approaches 35%. Under...

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The Challenges of Index Pricing

Wholesale prices as reported by the 7 US ISOs (Independent System Operators) come in two flavors: Next-Day, in which power is priced for delivery for the following day with each of the 24-hourly prices set independently. Real-Time, in which the price for power is (usually) set after the 5 minute to 1 hour settlement period has been realized. In both cases the price for...

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The Clarity Grid Solutions Electricity Index

Most of us are familiar with the standard fixed rate electricity contract. We assume that locking in a price for a year or two is safe and stable and while there are scenarios in which this is true, how much could you save if you took a little bit of risk? What if there was a way to see the circumstances where an index contract could save 20 to 40%? Clarity Grid...

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