Electricity Jumps New York to Houston as Demand Tops ForecastsNaureen S. Malik
Spot wholesale electricity at hubs from New York to Texas surged as hotter weather lifted demand above forecasts.
The high temperature in Manhattan’s Central park was 86 degrees Fahrenheit (30 Celsius), 2 above normal, while Washington rose to 6 above normal at 94 degrees, according to AccuWeather Inc. in State College, Pennsylvania. Houston may see a high of 99 degrees, 2 above the average high.
New York City prices jumped as demand reached 10,207 megawatts at 4:25 p.m., 3.6 percent higher than the peak-demand outlook of 9,849 megawatts for the same hour, data from the grid operator show. Power consumption also exceeded forecasts on the grids serving Texas and in the mid-Atlantic states.
Spot on-peak power for New York City rose $26.32, or 48 percent, to $81.73 a megawatt-hour as of 4 p.m. from yesterday’s full-day average, grid data compiled by Bloomberg showed. On-peak hours are Monday through Friday from 7 a.m. until 11 p.m.
The amount of electricity imported from Ontario dropped as the afternoon progressed. The New York state grid was importing 553 megawatts from the Canadian province at 4:51 p.m., down from 1,101 megawatts just before 11 a.m.
Prices at PJM Interconnection LLC’s Western hub, which includes deliveries to Washington, rose $7.80, or 16 percent, to $58.81 a megawatt-hour.
Electricity use on the PJM network, which serves more than 60 million people from New Jersey to North Carolina and Illinois, was 134,506 megawatts at 4:30 p.m., 6.1 percent higher than the day-ahead outlook of 126,775 megawatts for the hour, according to its website. Yesterday’s high was 133,828 megawatts at 4:15 p.m.
Spot power in Houston briefly surged to $818.61 a megawatt-hour after averaging $48.99 during the hour ended at 3 p.m. local time.
“Load appears to be running on the high side of our forecast range,” Robbie Searcy, a spokeswoman for Ercot in Austin, said in an e-mail.
Prices surged briefly after a communications system issue at a power plant “made it appear to our market management system that the unit, about 400 megawatts, had tripped,” Searcy said. “The unit didn’t trip. Telemetry indicated a situation that didn’t exist.”
Demand on the grid operated by the Electric Reliability Council of Texas Inc. was 62,817 megawatts at 3:54 p.m., 2 percent higher than the day-ahead forecast of 61,607 megawatts for the hour.