Spot wholesale electricity prices surged eight-fold across PJM Interconnection LLC’s benchmark Western hub as hotter temperatures helped drive power consumption to higher-than-forecast levels.
Power demand across PJM’s entire 13-state network, which extends from the mid-Atlantic region to the Midwest, averaged 110,000 megawatts for the hour that ended at 4 p.m., 2.7 percent higher than the day-ago period and 5.8 percent more than the day-ahead forecast for the period ending at 4:30 p.m. The average on-peak load in the market so far today reached the highest level in over six weeks.
The high temperature in Washington was projected to reach 91 degrees Fahrenheit (33 Celsius), 16 above normal, according to AccuWeather Inc. in State College, Pennsylvania.
Spot prices at PJM’s Western hub gained $285.93 to average $326.53 a megawatt-hour in the hour that ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
With those price gains, on-peak power in PJM West so far today averaged $61.46 higher than the Eastern hub. That compares with a premium of $7.34 yesterday and a three-month average discount of $8.30.
In New York City, spot power fell $21.78, or 49 percent, to average $22.50.