Power Prices Drop in Texas on Mildest Dallas Weather Since MayNaureen S. Malik
Spot wholesale electricity prices dropped in Texas as the mildest weather in Dallas since May reduced demand.
Power consumption on the main grid was 43,008 megawatts at 3:47 p.m. local time, 7 percent below the day-ahead forecast for the hour, according to the Electric Reliability Council of Texas Inc.’s website.
The temperature in Dallas today may reach 74 degrees Fahrenheit (23 Celsius), the lowest daily high since May 9, data show from AccuWeather Inc. in State College, Pennsylvania. Houston will be 4 higher than the usual reading at 86 degrees.
Spot prices at Ercot’s North hub, which includes the Dallas-Fort Worth metropolitan area, fell $13.64, or 31 percent, to average $29.76 a megawatt-hour during the hour ended at 4 p.m. local time from the same time on Oct. 11, grid data compiled by Bloomberg showed.
Higher-than-forecast demand lifted prices in California.
Demand on the 13-state PJM Interconnection LLC network averaged 86,621 megawatts at 4:55 p.m., about 2.7 percent higher than the day-ahead forecast for the hour, the grid operator’s website showed. Demand has been steady for five hours.
PJM reported a supply constraint on 115-kilovolt Corrye-Warren transmission line in FirstEnergy Corp.’s Penelec utility territory in Pennsylvania that contributed to higher prices, according to the grid’s website.
Spot prices at PJM’s benchmark Western hub, serving Washington, reversed earlier losses, rising $18.09, or 56 percent, to $50.27 a megawatt-hour during the hour ended at 5 p.m. local time.
On-peak power at the Western hub flipped to a premium of 65 cents versus the eastern region compared with an 18-cent discount on Oct. 11. The Eastern hub, serving New Jersey, eastern Pennsylvania, Maryland and Virginia, gained $17.50, or 53 percent, to $50.71.
New York City prices were down 65 cents at $37.83 a megawatt-hour while Boston gained $6.21, or 20 percent, to $37.34 a megawatt-hour.
Spot prices at California’s NP15 hub in the north, which includes San Francisco, rose $10.45, or 34 percent, to average $41.29 during the hour ended at 2 p.m. local time. Southern California’s SP15 hub rose $5.09, or 15 percent, to 39.35.