PJM Wholesale Power Drops as Grid Boosts Supplies on Hot Weather

Spot wholesale electricity in PJM Interconnection LLC fell for the third time in four days as the grid operator boosted supplies in anticipation of hotter weather.

Power at the Western hub dropped 40 percent as the manager of the grid stretching from New Jersey into North Carolina and Illinois increased scheduled power supplies in its region by 7.5 percent from yesterday. The high temperature in Washington today will be 90 degrees Fahrenheit (32 Celsius), 11 above normal, according to AccuWeather Inc. in State College, Pennsylvania.

On-peak power at the hub, which includes prices from Erie, Pennsylvania, to Washington, fell $22.85 to $34.55 a megawatt-hour at 12:19 p.m. New York time from yesterday’s full-day average, PJM data show. On-peak hours run from 7 a.m. to 11 p.m.

Electricity usage across the 13-state grid will climb to 120,765 megawatts from 4 p.m. to 5 p.m., 23 percent higher than yesterday’s peak of 98,837 megawatts at 5:20 p.m.

PJM increased scheduled supplies on its grid to 139,837 megawatts from 130,124 megawatts, according to its daily operations data.

Prices on PJM, the largest U.S. grid, which serves more than 60 million people, jumped late yesterday after a nuclear power plant went offline.

Dominion Resources Inc. (D) manually shut the 973-megawatt North Anna 2 reactor in Virginia because of decreasing steam generator levels at 3:07 p.m., according to a Nuclear Regulatory Commission filing. The unit, about 40 miles (64 kilometers) northwest of Richmond, had been operating at 98 percent of capacity earlier in the day.

The hourly average at the Western hub surged to $139.95 for the hour ended at 4 p.m., PJM data showed.

To contact the reporter on this story: Naureen S. Malik in New York at nmalik28@bloomberg.net

To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net

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