East Coast Wholesale Power Gains as Hot Weather Lifts Demand

Spot wholesale electricity prices gained from Maine to North Carolina as unusually hot and humid weather spurred demand for power to cool homes and offices.

Temperatures in the Northeast and mid-Atlantic states will be above-normal over the next two days, said WSI Corp. in Andover, Massachusetts. The high in Washington today may be 91 degrees Fahrenheit (33 Celsius), 11 higher than the usual reading, and Boston may be 21 above normal at 92 degrees, according to AccuWeather Inc. in State College, Pennsylvania.

On-peak power for PJM Interconnection LLC’s benchmark Western hub rose $4.93, or 8.2 percent, to $65.40 a megawatt-hour at 2:14 p.m. from yesterday’s full-day average, data from the grid operator show. On-peak hours run from 7 a.m. to 11 p.m. The PJM market spans 13 states from New Jersey to North Carolina and Illinois.

New England prices rose $7.20, or 13 percent, to $62.82 a megawatt-hour from yesterday’s on-peak average while New York City increased $5.98, or 10 percent, to $63.07 a megawatt-hour, according to data from the grid managers.

ISO New England Inc. issued a system alert for a second day for Rhode Island and southeastern Massachusetts as seasonal maintenance limits supply, according to the grid operator’s website. Peak power demand on the six-state grid from Connecticut to Maine will be 22,000 megawatts, 9.2 percent, higher than yesterday’s high.

PJM and the New York Independent System Operator Inc. also predicted higher demand on their grids.

California on-peak power so far today is trending higher versus the same hours yesterday amid higher demand, grid data compiled by Bloomberg show. Texas and Midwest prices are headed lower.

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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