Texas power spikes set tone for summer

US power markets are set to enter a painful period of price spikes this summer, signalling a need for more supply and transmission build. However, some analysts say spark or dark spreads - the difference between the price of electricity sold and the input cost of natural gas or coal - are currently too low on average for developers to recover capital and a return on investment on a potential new plant, diminishing incentive to build.

Michael Zenker, Barclays Capital's North American gas and power