Southern California Power Declines as Wind Output Tops ForecastNaureen S. Malik
Southern California spot wholesale electricity fell as wind generation increased while transmission bottlenecks limited flows to the north, where prices gained as demand topped estimates.
Southern California wind output was 1,867 megawatts during the hour ended at 1 p.m. local time, 14 percent higher than the day-ahead outlook for the time, the California Independent System Operator Inc.’s website showed. The region’s power demand was 0.4 percent below the forecast while the north topped estimates by 2 percent.
The discount of SP15 in Southern California to NP15 in the northern part of the state expanded to $20.15 a megawatt-hour at 1:19 p.m. local time from $1.76 yesterday, based on today’s on-peak average prices, grid data compiled by Bloomberg show.
Spot power at the SP15 hub fell $25.31, or 72 percent, to $9.75 a megawatt-hour for the hour ended at 1 p.m. from the same time yesterday. Prices at the NP15 hub fell $4.75, or 13 percent, to $32.53 for the same hour.
Electricity prices also gained in Texas as demand topped forecasts while the Eastern grids dropped for a second day as milder weather reduced the need to run air conditioners.
Houston power increased $3.72, or 9.4 percent, to $43.26 a megawatt-hour for the hour ended at 3 p.m. local time from a day earlier. Demand on the main state grid operated by the Electric Reliability Council of Texas Inc. was 58,600 megawatts at 2:34 p.m., 2.2 percent higher than the day-ahead outlook.
Temperatures will be below normal from the Northeast through the mid-Atlantic states and the Midwest through the rest of the week, according to WSI Corp. in Andover, Massachusetts.
Spot electricity for New York City dropped $31.86, or 47 percent, to average $36.63 a megawatt-hour at 4 p.m. while Boston slid $1.66, or 5 percent, to $31.69.
PJM Interconnection LLC’s benchmark Western hub, which includes prices from Washington to Erie, Pennsylvania, fell $2.09, or 5.6 percent, to $35.39 during the same hour.