Power Rises From Mid-Atlantic to Southeast Texas as Demand Jumps

Spot wholesale electricity prices jumped from Washington to Texas as frigid weather that brought ice, sleet and snow lifted power consumption.

Power use on the PJM Interconnection LLC network, the largest U.S. grid, rose 16 percent to average 133,786 megawatts during the hour ended at 9 a.m. from the same time yesterday, grid data compiled by Bloomberg show.

The high temperature today in Washington may reach 21 degrees Fahrenheit (minus 6 Celsius), a 33-degree drop from yesterday and 23 below average, according to AccuWeather Inc. in State College, Pennsylvania.

Spot prices at PJM’s benchmark Western hub, which includes deliveries to Washington, rose fourfold to average $168.94 a megawatt-hour for the hour ended at 9 a.m. from the same time yesterday, the grid data show. Prices at the Eastern hub, which includes New Jersey, jumped almost fivefold to average $175.94.

PJM West on-peak power traded $32.63 below the Eastern hub, compared with a discount of $18.51 yesterday and a three-month average discount of $8.98 for PJM West.

New York City prices reversed earlier gains and fell 23 percent to average $350 a megawatt-hour at 9 a.m., while Boston prices advanced 37 percent to average $325.94.

New York on-peak power traded $48.70 above Boston, compared with a premium of $5.67 yesterday and a three-month average discount of $12.60 for New York.

The cold weather extended to Texas, where prices at the North hub, which includes Dallas, jumped 37 percent to average $37.60 a megawatt-hour for the hour ended at 8 a.m. Houston hub prices rose 32 percent to average $36.13.

The high temperature today in Houston, where ice and sleet was expected, may reach 39 degrees, 25 below normal, AccuWeather said on its website.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.