Texas Power Prices Advance as Electricity Use Exceeds Forecast

Spot wholesale electricity in Texas rose as demand on the grid that serves most of the state exceeded expectations.

Power use on the Electric Reliability Council of Texas Inc. network averaged 33,160 megawatts during the hour ended at 3 p.m. local time, 3.3 percent higher than the day-ahead forecast, the grid’s website shows.

The high today in Houston reached 73 degrees Fahrenheit (23 Celsius), even with the historical average, according to AccuWeather Inc. in State College, Pennsylvania.

Spot power at the North hub, which includes Dallas, advanced $17.18, or 63 percent, to average $44.56 a megawatt-hour for the hour ended at 3 p.m. local time from the same time yesterday, grid data compiled by Bloomberg show. Houston hub prices gained $13.15, or 49 percent, to average $40.15.

New York City power fell $10.56, or 16 percent, to average $55.52 a megawatt-hour for the hour ended at 4 p.m. while Boston power slid $8.98, or 19 percent, to average $39.37.

New York on-peak power traded $20.97 above Boston, compared with a discount of $42.70 yesterday and a three-month average discount of $15.49.

At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power rose $12.27, or 32 percent, to average $51.05 at 4 p.m., while prices at the Eastern hub, which includes New Jersey, gained $12.99, or 32 percent, to average $54.13.

PJM West on-peak power traded $4.40 below the Eastern hub, compared with a discount of $3.04 yesterday and a three-month average discount of $17.12.

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