Power Prices Rise in Mid-Atlantic States as Demand Tops Forecast

Oct. 28 (Bloomberg) -- Spot wholesale electricity in PJM Interconnection LLC’s Western hub rose as demand topped forecasts on the largest U.S. power network.

Use in the 13-state region, which includes Washington, Philadelphia and Chicago, averaged 89,952 megawatts at 3:55 p.m., compared with a day-ahead forecast of 83,458 megawatts, according to PJM’s website.

Spot prices rose $2.16, or 6.8 percent, to average $33.79 a megawatt-hour during the hour ended at 3 p.m. from the same time Oct. 25, grid data compiled by Bloomberg show.

Power at the Eastern hub, which includes New Jersey, rose $2.05, or 6.3 percent, to $34.61 a megawatt-hour during the hour ended at 3 p.m. from the same time Oct. 25.

Prices in northern California’s NP15 hub jumped $7.12, or 21 percent, to $40.39 a megawatt-hour during the hour ended at noon local time from the same hour Oct. 25, after PG&E Corp. reduced output to 55 percent of capacity at the Diablo Canyon 1 reactor 160 miles northwest of Los Angeles for work that’s expected to last “several days,” Blair Jones, a spokesman for the company in San Francisco, said in an e-mail. For Southern California’s SP15 hub, prices rose $10.79, or 32 percent, to $44.44 a megawatt-hour.

Prices in New York City rose $14.75, or 35 percent, to $56.56 a megawatt-hour during the hour ended at 3 p.m. from the same time on Oct. 25. Matthew Oatway, a Genscape Inc. analyst in Boston, said in an electronic message that New York prices were higher because a transmission line from Westchester County to Manhattan was taken out of service Oct. 23.

The high temperature today in Chicago may be 53 degrees Fahrenheit (12 Celsius), 5 below average, while San Francisco may reach 58 degrees, 10 below the norm, according to AccuWeather Inc. of State College, Pennsylvania. Philadelphia may reach 63; Washington, 65; and New York, 60, all three in line with the historical averages.

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