PJM Deal Flow Update

July 21, 2025 

PJM/MISO deal flow remained steady through Friday 7/18/2025 as the market continued to show strength. The ENGIE pricing desk has been busy with executable requests for Fixed Price and Block & Index deals as customers respond to at least a short-term increase in prices. PJM Cal 2026 West Hub On Peak traded up to $66.00/MWh late last week and sold off to $64.35/MWh Monday morning. Henry Hub Natural Gas is down about 5% for the balance of 2025.

The ISO issued Hot Weather and Maximum Generation alerts last week. 

The Maximum Generation Alert primarily notifies neighboring systems that electricity exports from PJM may be curtailed. The alert serves as a procedural step that allows neighboring regions to plan accordingly.  A Maximum Generation Alert was in effect for July 15 but PJM operated without incident Tuesday. The alert also targets transmission/generation owners, who then determine if any maintenance or testing on equipment can be deferred or canceled.

A Hot Weather Alert is a routine procedure PJM issues ahead of forecasted temperatures of 90 degrees or above and/or high humidity to prepare transmission and generation personnel and facilities for expected increases in electricity demand, or load. This alert does not require any action from customers.

On June 24, PJM served a preliminary peak of over 162,000 MW, the third-highest peak load in its history.  The record was set in 2006 at 165,563 MW. 

The National Weather Service is forecasting extreme heat this week for the South, Plains and Midwest.   The forecast map does not include most of PJM. However, the NOAA outlook for July 26-30 calls for a return to above average temperatures.

There is no tropical activity being tracked in the Gulf Monday morning.

Source:  Steve Hammack, Pricing and Load Management