Eastern U.S. Power Rises as Hotter Weather Spurs Cooling NeedsNaureen S. Malik
Spot wholesale electricity on the largest U.S. power market, operated by PJM Interconnection LLC, gained for the first time four days in as hotter weather in the mid-Atlantic states spurred cooling demand.
The high temperature in Philadelphia today may be 88 degrees Fahrenheit (31 Celsius), 2 above normal, versus 6 below normal yesterday at 80 degrees, according to AccuWeather Inc. in State College, Pennsylvania. Power consumption in the mid-Atlantic region jumped to 45,653 megawatts at 3:40 p.m., about 7.6 percent higher than yesterday’s estimate for the time, PJM data show.
Spot electricity at PJM’s Eastern hub, which includes prices from New Jersey and Virginia, jumped $103.62 to average $142.87 a megawatt-hour during the hour ended at 4 p.m. from the same time yesterday, according to grid data compiled by Bloomberg. Yesterday’s day-ahead outlook was $56.71. The on-peak average was up 57 percent at $54.53.
The premium for Eastern hub on-peak power versus PJM’s benchmark Western hub widened to $13.61 a megawatt-hour from $2.13 yesterday.
PJM expects demand today to peak at 116,730 megawatts during the hour ended at 5 p.m., up from the day-ahead projection of 113,310 megawatts for the period, according to its website.
Northeast power also gained, reversing earlier losses, as New York City demand moved above yesterday’s levels and power consumption rose to match forecasts after coming in below hourly projections as parts of the region saw heavy rain.
New York power rose $27.89, or 97 percent, to $56.56 a megawatt-hour at 4 p.m. from the same hour yesterday. The on-peak average was down 3.5 percent at $33.64 from yesterday’s full-day average.
Boston prices increased $17.95, or 55 percent, to $50.69 a megawatt-hour during the same period. The on-peak average was up 10 percent at $38.14.
Northern California power dropped as demand fell below forecasts. An alert from the California Independent System Operator Inc., issued yesterday and running through today, asked consumers to conserve power because of extreme heat in cities such as Sacramento and Fresno.
Spot electricity at Northern California’s NP15 hub fell 73 cents, or 1.7 percent, at $41.86 a megawatt-hour during the hour ended at 1 p.m. local time from a day earlier, below the day-ahead price of $81.12. The on-peak average was down 20 percent at $35.57.
Southern California’s SP15 hub rose $6.13, or 15 percent, to $47.96 a megawatt-hour at 1 p.m. The on-peak average was down 4.7 percent at $38.82.
Southern California flipped to a premium of $3.25 a megawatt-hour versus the north after trading at a discount of $3.94 yesterday.