Power Prices Rise in New York After Indian Point Reactor ShutsNaureen S. Malik
Spot wholesale electricity gained in New York City after the Indian Point 3 nuclear reactor was shut for planned work while demand topped forecasts.
Entergy Corp. manually shut the reactor, about 27 miles (43 kilometers) north of New York City, to troubleshoot an issue with a steam generator valve on the non-nuclear side of the plant, said Jerry Nappi, a spokesman for the plant. The premium for New York City power widened versus Boston and northern New Jersey.
Power demand in Manhattan and its four neighboring boroughs was 8,963 megawatts as of 5:15 p.m., 2.2 percent higher than day-ahead forecast for the hour, the New York Independent System Operator Inc.’s website showed. The high temperature in Central Park today was 85 degrees Fahrenheit (29 Celsius), 1 above normal, AccuWeather Inc. in State College, Pennsylvania, said.
Spot prices for New York City more than doubled to $110.63 a megawatt-hour during the hour ended at 4 p.m. from the same time on July 26, grid data compiled by Bloomberg showed. The on-peak average rose 35 percent to $65.91 a megawatt-hour. On-peak hours are Monday through Friday from 7 a.m. until 11 p.m.
The average premium for deliveries to the city during the highest demand hours widened to $22.28 a megawatt-hour versus Boston from the July 26 average of $9.90. New York power traded at a $9.23 premium to Public Service Enterprise Group Inc.’s northern New Jersey utility territory, compared with a discount of 51 cents on July 26.
Indian Point 3 was operating at full power yesterday, U.S. Nuclear Regulatory Commission data show. The unit’s summer capacity is 1,031 megawatts, according to the Energy Information Administration.
An increased flow of power into New York after the reactor went offline is adding to transmission bottlenecks in northern New Jersey, bolstering prices on parts of the grid operated by PJM Interconnection LLC, said Natalia Mestvirishvili, senior power market analyst at Genscape Inc. in Boston.
Net shipments of electricity from PJM to the New York state grid rose to 952 megawatts at 2:45 p.m. versus 126 megawatts a day earlier, New York ISO data show.
The 230-kilovolt line from Cedar Grove to Roseland started experienced congestion starting at 9:45 a.m., causing prices in northern New Jersey to briefly topped $500, PJM data show.
While a parallel line has been down since June 6, “the loss of Indian Point 3 just north of New York triggered the congestion with more flows out to New York,” Mestvirishvili said.
Spot power at PJM’s Eastern hub, which includes prices for Newark and Philadelphia and Virginia, gained $8.51, or 16 percent, at $62.88 a megawatt-hour during the hour ended at 4 p.m. from the same time July 26.
Prices climbed from Maine to Connecticut as consumers used more electricity than the operator of the six-state grid had projected. Power use jumped to 21,732 megawatts at 3:40 p.m., 4.2 percent higher than the peak forecast for today of 20,860 megawatts, according to ISO New England Inc.’s website.
Boston electricity almost tripled to $80.72 a megawatt-hour at 4 p.m.