Dive Brief:

• The Northwest is facing below-normal runoff, which would lower hydroelectric generation in the region and could affect power prices across the West coast, according to the Energy Information Administration.
• Precipitation for the “water year” that started in October is at least 30% below normal in most of the Northwest. A large part of the region has seen less than half of normal precipitation levels so far.
• Idaho, Montana, Oregon and Washington are home to 35% of all hydro capacity in the U.S.

(source: EIA)

Dive Insight:

Below-normal runoff will push up power prices in the West. At the same time, California, which typically imports excess hydroelectric generation from the Northwest, is facing a drought. This is good news for power plant owners, but will drive up costs for consumers. The forecast highlights the difficulties grid planners have in the region, which depends heavily on hydro.