Power Drops on Northeast Grids Amid Lower-Than-Forecast Demand

Spot wholesale electricity from New York to Maine slumped as milder weather reduced the need for power to run air conditioners.

Demand was running below forecasts on the grids serving New England and New York state. The high temperature in New York City today will be 83 degrees Fahrenheit (28 Celsius), 1 below normal, and Boston may see a seasonal 82 degrees, according to AccuWeather Inc. in State College, Pennsylvania.

Spot power for New York City dropped $18.28, or 38 percent, to average $30.38 a megawatt-hour during the hour ended at 11 a.m. from the same time yesterday, grid data compiled by Bloomberg show. Boston slid $9.29, or 24 percent, to $28.82.

The premium for New York spot on-peak power versus Boston narrowed to 43 cents from $12.36 yesterday. On-peak hours are Monday through Friday from 7 a.m. until 11 p.m.

Electricity consumption in Manhattan and its four neighboring boroughs may peak at 8,511 megawatts today, 6 percent below yesterday’s high of 9,054 megawatts, according to the New York Independent System Operator Inc.’s website.

ISO New England Inc. expects peak demand on the six-state grid it manages to be 6.2 percent lower today at 20,360 megawatts versus 21,711 megawatts yesterday, according to a daily report.

Prices were little changed on the PJM Interconnection LLC network, which stretches from New Jersey into North Carolina and Illinois. Electricity use across the grid was 102,961 megawatts at 11:30 a.m. versus the day-ahead forecast of 102,993 for the time.

Spot power at its benchmark Western hub was up 29 cents, or 0.9 percent, at $33.66 a megawatt-hour during 10 a.m. hour.

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: Dan Stets at dstets@bloomberg.net

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