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Mid-Atlantic Power Prices Drop as Mild Weather Cuts Demand

Spot wholesale electricity prices declined in the mid-Atlantic states as mild weather reduced demand on the largest U.S. grid.

Power use on the PJM Interconnection LLC network slid 4.7 percent to average 98,621 megawatts for the hour ended at 10 a.m. versus the same time yesterday, grid data compiled by Bloomberg show.

The high temperature today in Washington may reach 52 degrees Fahrenheit (11 Celsius), 9 above average, according to AccuWeather Inc. in State College, Pennsylvania.

Spot prices at PJM’s benchmark Western hub, which includes Washington, fell $7.77, or 20 percent, to average $30.35 a megawatt-hour for the hour ended at 10 a.m. from the same time yesterday, the grid data show. Prices at the Eastern hub, which includes New Jersey, slid $71.08, or 71 percent, to average $28.98.

PJM West on-peak power traded $3.28 below the Eastern hub, compared with a discount of $11.72 yesterday and a three-month average discount of $7.06.

Power in New York City advanced $3.21, or 8.7 percent, to average $39.92 a megawatt-hour at 10 a.m., while Boston prices gained $1.97, or 4.1 percent, to average $49.73.

New York on-peak power traded $11.21 above Boston, compared with a $12.52 discount yesterday and a three-month average discount of $13.40 for New York.

Spot prices at the Indiana hub, a regional benchmark for the Midwest, fell $3.57, or 14 percent, to average $21.83 a megawatt-hour for the hour ended at 9 a.m. local time from the same time yesterday, after almost quadrupling an hour earlier to average $112.15, the grid data show.

To contact the reporter on this story: Harry R. Weber in Houston at hweber14@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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