East Coast Wholesale Power Gains as Hot Weather Lifts DemandNaureen S. Malik
Spot wholesale electricity prices gained from Maine to North Carolina as unusually hot and humid weather spurred demand for power to cool homes and offices.
Temperatures in the Northeast and mid-Atlantic states will be above-normal over the next two days, said WSI Corp. in Andover, Massachusetts. The high in Washington today may be 91 degrees Fahrenheit (33 Celsius), 11 higher than the usual reading, and Boston may be 21 above normal at 92 degrees, according to AccuWeather Inc. in State College, Pennsylvania.
New England on-peak power surged $23.14, or 42 percent, to $78.76 a megawatt-hour at 4:12 p.m. from yesterday’s full-day average while New York City increased $5.10, or 8.9 percent, to $62.19 a megawatt-hour, according to data from the grid managers. On-peak hours run from 7 a.m. to 11 p.m.
Prices for PJM Interconnection LLC’s benchmark Western hub rose $10.67, or 18 percent, to $71.13 a megawatt-hour at 4:12 p.m., the most since May 22, data from the grid operator show. The PJM market spans 13 states from New Jersey to North Carolina and Illinois.
ISO New England Inc. issued a system alert for a second day for Rhode Island and southeastern Massachusetts as seasonal maintenance limits supply, according to the grid operator’s website. Power usage on the six-state grid was 22,446 megawatts at 4:25 p.m., exceeding today’s peak forecast of 22,000 megawatts. Demand yesterday peaked at 20,139 megawatts.
PJM and the New York Independent System Operator Inc. also predicted higher demand on their grids.
California on-peak power so far today is trending higher versus the same hours yesterday amid higher demand, grid data compiled by Bloomberg show. Texas and Midwest prices are headed lower.