Power Prices Drop on Eastern U.S. Grids Amid Lower Demand

Spot wholesale electricity prices dropped from Maine to Virginia as demand fell.

Power use on the PJM Interconnection LLC network, which serves more than 60 million people from Washington to Chicago, was 113,014 megawatts at 4 p.m., down 1.5 percent from the same time yesterday. Demand was also lower in the Northeast.

Sunny and pleasant weather with low humidity was expected across the 13-state PJM region and the Northeast today, according to WSI Corp. in Andover, Massachusetts. The high in Manhattan may be 82 degrees Fahrenheit (28 Celsius), 3 above normal, and Washington may be 1 lower than average at 83, said AccuWeather Inc. in State College, Pennsylvania.

Spot on-peak power at PJM’s Western hub, which includes deliveries to Washington, dropped $10.95, or 23 percent, to average $37.10 a megawatt-hour during as of 3 p.m. from yesterday’s full-day average, grid data compiled by Bloomberg showed. On-peak hours on the grid are Monday through Friday from 7 a.m. until 11 p.m.

Boston prices slid $23.78, or 46 percent, to $27.64 a megawatt-hour during the same period, while New York City fell $12.40, or 26 percent, to $36.31.

New York on-peak power traded at an average premium of $8.67 versus Boston compared with a discount of $2.71 yesterday.

Texas power fell from a 14-month high after two units that had tripped offline yesterday afternoon returned to service, according to Genscape Inc., a Boston-based firm that tracks real-time power data.

Ercot Disruption

The Electric Reliability Council of Texas Inc. said that a 604-megawatt power plant went offline at 3:25 p.m. yesterday followed by the sudden loss of another 609-megawattr unit, according to its website.

Spot on-peak prices at Ercot’s North hub, which includes deliveries to Dallas, were down $164.89, or 83 percent, at $34.08 a megawatt-hour as of 2 p.m. local time from yesterday’s full-day average of $198.97, which was the most since June 26, 2012.

Southern California prices jumped amid transmission constraints that limited imports into the region and demand increased, data from the grid operator showed.

Spot on-peak power at the SP15 hub, which serves Los Angeles and San Diego, gained $42.85, or 92 percent, to $89.31 megawatt-hour as of noon local time. The NP15 hub, which includes San Francisco, was down $4.39, or 10 percent, at $37.99.

The SP15 hub premium widened to $51.32 versus the northern California hub from $4.08 yesterday.

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