Genscape: California Drought & Impacts On The Summer Power Grid

With California well into its fourth year of a severe and prolonged drought, Governor Brown recently issued the state's first mandatory water cutback. Record-low snowpack levels have market participants feeling the impacts of this, and Genscape’s analysts are forecasting a warm April in the region, which will only speed up the snow melt, potentially increasing prices.

Genscape's most recent blog post, "California Drought & The Summer Power Grid," provides further details on the impacts of the drought on the market and discusses why Genscape expects prices to rise, even though California should not expect any blackouts this summer. Genscape's analysts are closely monitoring the impact of this drought and will continue to use their proprietary power data to analyze the ongoing situation.