Power Prices in Texas Rise as Wind Generation Below Forecast
Spot wholesale electricity in Texas rose as demand exceeded expectations and wind generation was below forecast on the grid that serves most of the state.
Power use on the Electric Reliability Council of Texas Inc. network averaged 34,409 megawatts during the hour ended at 10 a.m. local time, versus the day-ahead forecast of 34,367 megawatts, the grid’s website shows.
Wind generation averaged 2,940 megawatts during the hour ended at 10 a.m. local time, versus the day-ahead forecast of 3,415 megawatts. Wind-power generation comprised 9.9 percent of power on the Ercot grid last year.
Ercot manages flow of electric power to 24 million Texas customers, representing 85 percent of the state’s electric load.
The high temperature today in Houston may reach 75 degrees Fahrenheit (24 Celsius), 2 above the historical average, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the Texas North hub, which includes Dallas, advanced $6.44, or 21 percent, to average $37.68 a megawatt-hour for the hour ended at 10 a.m. from the same time yesterday, after earlier more than tripling to $108.60, grid data compiled by Bloomberg show. Houston hub prices gained $6.46, or 21 percent, to average $37.70.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power fell $14.78, or 24 percent, to average $47.43 a megawatt-hour for the hour ended at 11 a.m. New York time from the same time yesterday. Prices at the Eastern hub, which includes Washington, slid $14.73, or 23 percent, to average $49.65.
PJM West on-peak power traded $3.24 below the Eastern hub, compared with a discount of $4.39 yesterday and a three-month average discount of $16.99 for PJM West.
New York City power declined $40.22, or 57 percent, to average $30.27 a megawatt-hour at 11 a.m., while Boston power slid $8, or 13 percent, to average $54.97.
New York on-peak power traded $3.26 below Boston, compared with a premium of $38.48 yesterday and a three-month average discount of $13.53 for New York.
To contact the reporter on this story: Harry R. Weber in Houston at firstname.lastname@example.org