PJM Wholesale Power Drops as Grid Boosts Supplies on Hot Weather

Spot wholesale electricity in PJM Interconnection LLC fell for the third time in four days as the grid operator boosted supplies in anticipation of hotter weather.

Power at the Western hub dropped 30 percent as the manager of the grid stretching from New Jersey into North Carolina and Illinois increased scheduled power supplies in its region by 7.5 percent from yesterday. PJM increased scheduled supplies on its grid to 139,837 megawatts from 130,124 megawatts, according to its daily operations data.

On-peak power at the hub, which includes prices from Erie, Pennsylvania, to Washington, fell $17.17 to $40.21 a megawatt-hour at 4:15 p.m. New York time from yesterday’s full-day average, PJM data show. On-peak hours run from 7 a.m. to 11 p.m.

The high temperature in Washington rose to 91 degrees Fahrenheit (33 Celsius) at 4 p.m., 12 higher than the usual reading, and Philadelphia rose to 11 above normal at 89 degrees, according to AccuWeather Inc. The State College, Pennsylvania-based forecaster said a swath of PJM will see a heat wave heading into the weekend.

Electricity usage across the 13-state grid peaked at 119,238 megawatts from 4 p.m. to 5 p.m., 21 percent higher than yesterday’s peak of 98,837 megawatts at 5:20 p.m. Demand will climb to 129,940 megawatts for the same peak hour.

Spot power jumped yesterday after a nuclear power plant in Virginia went offline.

Virginia Reactor

Dominion Resources Inc. manually shut the 973-megawatt North Anna 2 reactor because of decreasing steam generator levels at 3:07 p.m., according to a Nuclear Regulatory Commission filing. The unit, about 40 miles (64 kilometers) northwest of Richmond, had been operating at 98 percent of capacity earlier in the day.

The hourly average at the Western hub rose to $139.95 yesterday for the hour ended at 4 p.m., the highest for that same period since May 17, PJM data showed.

Hotter weather spurred electricity demand and prices on the two Northeast grids.

Spot on-peak power for New York City gained for the first time in five days, rising $11.72, or 36 percent, to $43.87 a megawatt-hour at 5:16 p.m. from yesterday’s average, according to data from New York Independent System Operator Inc., which manages the state grid.

Power from Connecticut to Maine gained $4.37, or 11 percent, to $43.61 a megawatt-hour at 5:16 p.m., according to ISO New England Inc., the region’s grid operator.

On-peak electricity also rose at the four Midwest hubs, while spot prices fell in California and Texas, data from the grid operators show.

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