Power Rises From New Jersey to Virginia as Heat Lifts DemandNaureen S. Malik
Spot wholesale electricity from New Jersey to Virginia gained for the fourth consecutive day as unusually warm weather lifted demand.
Power use on the 13-state PJM Interconnection LLC network, the largest in the U.S., was 130,655 megawatts at 2:20 p.m., up 5.7 percent from the same time yesterday, according to the company’s website. The grid operator expects demand to peak at a one-month high today.
Temperatures will be above normal from New England through the mid-Atlantic states and into the Midwest, according to WSI Corp. in Andover, Massachusetts. The high in Philadelphia today may reach 90 degrees Fahrenheit (32 Celsius), 5 above normal, and Chicago’s reading may be 4 higher than the average at 86 degrees, said AccuWeather Inc. in State College, Pennsylvania.
“This is the first real weather demand that we’ve seen since the end of July,” said Stephen Schork, president of Schork Group Inc., a consulting group in Villanova, Pennsylvania. “It’s been in such a lull over the past two weeks.”
Spot power for PJM’s benchmark Western hub, which includes deliveries to Washington, rose $3.58, or 6.9 percent, to $55.51 a megawatt-hour during the hour ended at 2 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
PJM raised its demand forecast as consumers were using more power than the day-ahead projection. The Valley Forge, Pennsylvania-based grid operator expects consumption to peak at 133,863 megawatts today, the most since July 23, grid data show.
Prices also gained from New York to Maine as demand exceeded the regional grid managers’ forecasts. The high temperature in Manhattan today may be 90 degrees, 8 above the average, while Boston may top the norm by 9 at 88 degrees, AccuWeather said.
New York City spot electricity reversed earlier losses, rising $29.42, or 59 percent, to $78.98 a megawatt-hour during the hour ended at 2 p.m. Boston prices jumped $21.94, or 57 percent, to $60.06.
Prices gained across the main Texas grid as the demand increased exceeded forecasts. Houston power rose $5.29, or 13 percent, to $45.86 a megawatt-hour during the hour ended at 1 p.m. local time.