SPP Market Analysis: High Congestion Impacts Hub Price Spread

We have seen that windy days in the Southwest Power Pool (SPP) market increase North Hub and South Hub price differences. We investigated and analyzed this market behavior with Panorama. In the below publication screenshot, we can see a huge hub price spread on June 23, a windy day in SPP region. High transmission congestion in the south has a bullish effect on the South Hub prices.

Our constraint study module gives a quick list of the high-impact binding constraints for the hub spread between April 16-June 15. The below chart shows that the Cimarron (345/1 KV) transformer in central Oklahoma is highly bullish for the hub price spread. 

Additionally, the chart below shows that the same Cimarron (345/1 KV) transformer is binding whenever the wind production is strong in the OKGE, SEC and SPS regions. High wind generation in southern plains during high load hours in OKGE, CSWS and WFEC is the main reason for binding events of this constraint. Additionally, an ongoing long-term 138KV transmission outage is also causing this constraint to bind. The Cimarron transformer is frequently binding after the Traverse Wind Energy Center, a  new wind resource west of this transformer, came online earlier this year. 

The below system map is showing this constraint’s location and its effects on central Oklahoma area. Constraint Exposure (PTDF) module in Panorama calculates the shift factor on a node, load zone or hub due to a binding constraint. Shift factor analysis shows that the Cimarron (345/1KV) transformer binding constraint is highly bullish for South Hub and bearish for North Hub prices.

As you can see, Panorama is a great tool to analyze market behavior and issues. It provides fast and accurate results for all the nodes, load zones and hubs dynamic power market caused by renewable resources. It provides insight into congestion drivers and information for historical binding events. It can be used to explore market conditions for thousands of different scenarios..

To learn more or see this analysis in action, check out this on-demand webinar, “Managing Transmission and Congestion Volatility in the Wholesale Market.”