Power Prices Slide on Eastern U.S. Grids Amid Milder Weather

Spot wholesale electricity tumbled for a second day from Boston to Washington and Chicago as milder weather reduced air-conditioning demand.

Power consumption on the 13-state PJM Interconnection LLC grid, which serves more than 60 million people from the East Coast to the Ohio Valley, was 98,250 megawatts at 1 p.m., 21 percent lower than the same time yesterday, according to the operator’s website.

Sweltering heat that swept the Northeast, Midwest and mid-Atlantic states earlier this week gave way to cooler-than-normal readings today, according to AccuWeather Inc. in State College, Pennsylvania. The high in Chicago may be 64 degrees Fahrenheit (18 Celsius), 13 below normal, and Washington may be 2 lower than average at 79 degrees.

Spot prices at PJM’s benchmark Western hub, which includes deliveries to Washington, fell $58.08, or 65 percent, to $31.93 a megawatt-hour during the hour ended at 1 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.

New York City power dropped $85.41, or 68 percent, to $40.01 a megawatt-hour and Boston slid $15.47, or 25 percent, to $47.58. On-peak power for New York traded at a discount of $5.31 to Boston, compared with a premium of $18.74 yesterday.

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