Power Climbs on Eastern U.S. Grids as Demand Exceeds ForecastsNaureen S. Malik
Spot wholesale electricity from Maine to Virginia climbed as demand topped estimates and the Northeast regional grid operators issued alerts.
Power for Manhattan and its neighboring four boroughs jumped after the New York Independent System Operator Inc. issued a thunderstorm alert from 1:30 p.m. to 3:50 p.m., which cut imports as the grid operated more conservatively. ISO New England Inc. issued a Master/Local Control Center 2 Alert after 2 p.m. because of existing or possible abnormal conditions.
The high temperature in New York City today was 87 degrees Fahrenheit (31 Celsius), 3 higher than the usual reading, and Boston may be 4 above normal at 85 degrees, according to AccuWeather Inc. in State College, Pennsylvania.
Spot electricity for New York gained $55.84, or 74 percent, to $131.44 a megawatt-hour during the hour ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg showed. Yesterday’s day-ahead outlook for the hour was $114.61.
Boston rose $29.91, or 68 percent, to $73.77 a megawatt-hour, above the day-ahead price of $71.31 for the hour.
On-peak spot power for New York is trading at an average premium of $16.80 a megawatt-hour to Boston, down from $30.04 yesterday. On-peak hours are Monday through Friday from 7 a.m. until 11 p.m.
Power consumption from Maine to Connecticut was 22,311 megawatts at 3:45 p.m., topping the peak-demand outlook of 22,000 during the hour ended at 5 p.m. New York City demand was 10,240 megawatts at 4 p.m., above the projected high for today of 10,041 megawatts, according to the NYISO’s website.
Spot prices on the 13-state grid operated by PJM Interconnection LLC, and in Texas also gained as demand exceeded estimates, while California power dropped as demand slid below yesterday’s forecast.
PJM’s benchmark Western hub, which includes prices from Washington to Erie, Pennsylvania rose $6.87, or 14 percent, to $57.80 a megawatt-hour during the hour ended at 4 p.m.
Houston power rose $5.61, or 14 percent, to $45.21 a megawatt-hour for the hour ended at 3 p.m. local time. Southern California’s SP15 hub was down $12.75, or 22 percent, at $45.06 at 1 p.m. West Coast time from the same hour yesterday.