New York-to-Washington spot wholesale electricity retreated from nine-week highs as surplus supplies increased on the grids.
PJM Interconnection LLC, which manages the 13-state mid-Atlantic network, said power reserves jumped 43 percent from Monday while peak demand was expected to drop 5 percent. The capacity margin in New York state, the difference between available generation and expected peak demand, rose more than threefold, the grid operator said.
While the mid-Atlantic region will experience hotter weather, excess supplies rose partly because of unusually cool readings in Midwest. The high in Washington reached 89 degrees Fahrenheit (32 Celsius), 15 above normal, while Chicago topped out at 58, AccuWeather Inc.’s website showed. Manhattan’s high will be 16 higher than average at 86.
Spot power at PJM’s benchmark Western hub, which includes Washington, fell $27.32, or 20 percent, to $110.05 a megawatt-hour in the hour ended at 4 p.m. from the same time Monday, according to grid data compiled by Bloomberg. New York City prices slid $34.05, or 45 percent, to $42.41.
Average spot prices for on-peak hours for both hubs jumped Monday to the highest levels since March 6.
New England prices fell as demand tracked projections. Power in Boston dropped $33.24 to $28.55 in the 4 p.m. hour.