Midwest Wholesale Power Rises to Two-Week High as Demand ClimbsNaureen S. Malik
Spot wholesale electricity more than doubled to two-week highs across the Midwest as demand exceeded forecasts.
Power usage on the grid stretching from Michigan to North Dakota jumped to 60,820 megawatts at 2:40 p.m. Central time, 2.4 percent higher than yesterday’s outlook, according to the Midwest Independent System Operator Inc. The high in Indianapolis will be 80 degrees Fahrenheit (27 Celsius), 1 above normal, said AccuWeather Inc. in State College, Pennsylvania.
Spot on-peak power at the region’s benchmark Indiana hub jumped $33.67 to $59.50 a megawatt-hour at 4:13 p.m. New York time from yesterday’s full-day average, the highest price since May 21, grid data compiled by Bloomberg show. Illinois gained $36.26 to $58.57 and Michigan surged $35.01 to $64.95, also the highest since May 21.
The unplanned shutdown of a coal unit and lower-than-forecast wind generation reduced supplies while demand increased, said Lauren Seliga, a Boston-based analyst for Genscape Inc., which tracks real-time power data.
“We were looking under-committed already today so the loss of generation on top of that stretched them thin,” Seliga said.
Wind turbines produced 1,213 megawatts of electricity during the hour ended at 2 p.m., 43 percent less than the forecast of 2,126 megawatts for the hour, MISO’s website showed.
Much of the region’s wind generation is concentrated in the grid’s western states. Spot on-peak power at the Minnesota hub reached a six-week high of $63.67 a megawatt-hour, more than double yesterday’s full-day average.
Spot power prices gained for the first time in three days on the two Eastern U.S. grids operated by PJM Interconnection LLC and ISO New England Inc. as demand exceeded forecasts.
On-peak electricity at PJM’s benchmark Western hub rose $6.12, or 16 percent, to $44.73 a megawatt-hour at 4:12 p.m., the first gain in three days. The PJM grid stretches from New Jersey to North Carolina.
Boston prices rose $5.59, or 17 percent, to $37.60 a megawatt-hour from yesterday’s average, data compiled by Bloomberg show. showed. On-peak hours run from 7 a.m. to 11 p.m.
New York City and California prices were little changed while Texas power fell.