Southeast and Gulf Coast electricity markets

• Unlike regions with independent power grids, power in the Southern states is provided by integrated power companies. Each of these companies is linked to nearby grids and power can be traded between them. However, because these are still regulated markets, there is little opportunity to trade power within the service area of any of these companies.
• The Gulf Coast region is characterized by mild winters and prolonged hot summers. Long-lasting heat waves can start affecting the area inearly spring and may last until late October ==> Seasonal demand is quite different from the northern states --- demand is low most of the winter and peaks for an extended time in the Summer.
• From a precipitation perspective, the southeastern United States has a tropic climate.
• There is a wet season running from November to May, and a dry season running from June to October.
• There is substantial hydroelectrical generation in the Tennessee Valley area that is affected by this rainfall. During the period of high rainfall, the Tennessee Valley can export power to other parts of the Southeast, the Midwest, or the East Coast.
• Coal and natural gas are both marginal fuels for the area. There are ready supplies of both fuels locally --- the Gulf Coast is a major source of natural gas, and the Appalachian Mountains contain abundant coal deposits.