Wholesale Power Gains From Washington to Chicago

Aug. 7 (Bloomberg) -- Spot wholesale electricity climbed in New York and the mid-Atlantic as consumption on the grids surpassed projections.

Demand on PJM Interconnection LLC’s 13-state network touched 115,549 megawatts at 3 p.m., exceeding the day-ahead forecast for the hour ending at 3:30 p.m. of 113,094 megawatts, data on the grid manager’s website showed.

The temperature in Washington today was 85 degrees Fahrenheit (29 Celsius) at 3:33 p.m., 2 less than the normal high, while New York touched 83 degrees, 1 lower than usual, according to AccuWeather Inc. of State College, Pennsylvania.

In PJM’s Eastern hub, which includes New Jersey, eastern Pennsylvania, Maryland and Virginia, power gained $4.53, or 11 percent, to average $44.47 a megawatt-hour during the hour ended at 3 p.m. New York time from the same time yesterday, grid data compiled by Bloomberg showed.

In PJM’s benchmark Western hub, which includes Washington, power slid $7.18, or 14 percent, to average $43.38.

On-peak power in the Eastern hub traded $2.05 more than the West, compared with a 27-cent premium yesterday and a three-month average premium for the Eastern hub of $5.97.

In Manhattan and its four neighboring boroughs, spot power gained $3.26, or 8.7 percent, to average $40.65, data from New York Independent System Operator Inc. showed.

In New York ISO’s West Zone, power gained $2.21, or 6.5 percent, to average $36.33 after reaching $135.98 at 9 a.m. as a line outage limited the amount of power able to be transferred in the west. The issue caused wholesale power prices to briefly surge to $1,200 a megawatt-hour, New York ISO spokesman David Flanagan said in an e-mail.

To contact the reporter on this story: Jonathan N. Crawford in New York at jcrawford47@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Bill Banker, Richard Stubbe