Electricity on Northeast Grids Gains as Demand Tops ForecastsNaureen S. Malik
Spot wholesale electricity from New York to Maine increased as consumers used more power than the grid operators forecast.
Electricity use in New York City was 7,936 megawatts at 3:20 p.m., 1.9 percent higher than the forecast for the hour, according to New York Independent System Operator Inc.’s website. New England consumption was 17,640 megawatts at 3:30 p.m., in line with the forecast, after coming in above the day-ahead outlook for the previous four hours.
Average real-time prices at major hubs across the Eastern U.S. are at their lowest levels ever for the first week of August, based on grid data going back to 2005. Temperatures will be below normal along the East Coast today while Texas will see higher readings, according to WSI Corp. in Andover, Massachusetts.
Spot power for New York City gained $14.64, or 59 percent, to $39.67 a megawatt-hour during the hour ended at 3 p.m. from the same time yesterday while Boston climbed $11.35, or 47 percent, to $35.66.
The average spot on-peak premium for New York City versus the Boston average widened to $9.37 a megawatt hour from $8.44 yesterday. On-peak hours are Monday through Friday from 7 a.m. until 11 p.m.
Texas prices reversed earlier losses as unusually hot weather swept across the largest power-consuming state. The temperature in Dallas today may rise to 103 degrees Fahrenheit (39 Celsius), 6 above the normal high, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power on the main state grid managed by the Electric Reliability Council of Texas Inc. increased $1.40, or 3.4 percent, to $42.19 a megawatt-hour during the hour ended at 2 p.m. local time from a day earlier.
Lower-than-forecast demand on the 13-state network managed by PJM Interconnection LLC network pressured prices from Washington to Chicago. Demand was 108,629 megawatts at 3:30 p.m., 3.1 percent below the day-ahead outlook for the time.
PJM’s benchmark Western hub, which includes deliveries to Washington, slid $1.39, 4 percent, to $33.47 a megawatt-hour during the hour ended at 3 p.m.
California prices reversed earlier gains as demand dropped from day-earlier levels. The NP15 hub, which includes deliveries to San Francisco, was down $4.67, or 12 percent, at $34.94 a megawatt-hour during the 11 a.m. hour local time.
The discount for the Northern California hub versus Southern California’s SP15 hub widened to 52 cents from 30 cents yesterday.