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Electricity Prices Jump in Midwest as Demand Exceeds Forecast

Spot wholesale power in the Midwest jumped as demand exceeded expectations on the region’s grid.

Electricity use on the Midcontinent Independent System Operator Inc. network, which stretches from Canada to the Gulf Coast, averaged 83,622 megawatts at 12:15 p.m. New York time, versus the day-ahead forecast of 83,578 megawatts.

The high temperature today in Indianapolis may reach 30 degrees Fahrenheit (minus 1 Celsius), 13 below the historical average, according to AccuWeather Inc. in State College, Pennsylvania.

Spot power at the benchmark Indiana hub rose $2.76, or 7.8 percent, to average $38.20 a megawatt hour for the hour ended at 11 a.m. local time from the same time Feb. 21, data compiled by Bloomberg show.

At PJM Interconnection LLC’s benchmark Western hub, which includes deliveries to Washington, spot power advanced $9.43, or 20 percent, to average $57.36 in the hour ended at noon New York time. 21. Prices at the Eastern hub, which includes New Jersey, jumped $9.83, or 19 percent, to average $61.26.

New York City spot power fell $3.34, or 2.6 percent, to average $123.32 a megawatt hour at noon versus the same time Feb. 21, while Boston power gained $40.20, or 27 percent, to average $187.94.

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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