Gas Storage Level Continues To Build

Today’s gas storage report shows continued building in the storage volume. The level is now near the 5 year average high. Mild weather has contributed to the building natural gas in storage. This has helped to keep the forward price for gas low. The graph shows the turn to withdraws is near but will the shale gas production diminish the decline? Time will tell. This could hold the price increases during the winter heating season lower than would be expected.

PG&E Wants to Pay Above Market Rate for Solar PPA

Commissioner Michele P. Florio with the California Public Utility Commission has written a dissenting opinion on PG&E’s request forĀ  approval to enter into a power purchase agreement with North Star Solar, LLC. In the dissent Commissioner Florio points out that PG&E wants to pay more than SDG&E paid for a similar agreement. Is this because PG&E does not have a market incentive to seek out the best deal?

Link to the dissent letter.