Power for Boston to Washington Rises as Demand Tops ForecastsNaureen S. Malik
Spot wholesale electricity rose from the East Coast to the Midwest as hotter weather lifted demand.
The high temperature in New York City today will be 84 degrees Fahrenheit (29 Celsius), 3 above normal, and Washington’s reading may exceed the average by 3 at 87 degrees, according to AccuWeather Inc. in State College, Pennsylvania.
PJM Interconnection LLC said that demand on the 13-state grid it manages, which includes Philadelphia, Washington and Chicago, was 110,817 megawatts at 12:30 p.m., 2.9 percent higher than the day-ahead outlook for the time. Consumption in New England topped forecasts in the Northeast.
Spot on-peak power at PJM’s benchmark Western hub, which includes deliveries to Washington, gained $11.23, or 36 percent, to average $42.85 a megawatt-hour as of 3 p.m. compared with 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.
Transmission bottlenecks in West Virginia along the 500-kilovolt line between Mount Storm and Pruntytown briefly caused hub prices to surge to more than $100, PJM data show. The line helps transfer power from the western region of the grid to outside the Washington metropolitan area.
New York City spot on-peak prices rose $23.70, or 72 percent, to $56.54 a megawatt-hour while Boston increased $3.31, or 11 percent, to $33.45.
The premium for on-peak power price for New York versus Boston widened to $23.09 a megawatt-hour as of 3 p.m. from yesterday’s average of $2.70.
California prices gained as demand topped forecasts while Texas consumers using less power than expected sent prices lower on the main state grid.
On-peak power at Southern California’s SP15 hub was up $6.96, or 25 percent, at $34.91 a megawatt-hour. Houston’s average was down $9.90, or 27 percent, at $27.32 at 2 p.m.