Mid-Atlantic Power Prices Fall as Demand Drops Below Forecasts

Spot wholesale electricity in PJM Interconnection LLC’s Western hub fell as demand came in below forecasts.

Prices reversed earlier gains as demand reached 87,598 megawatts at 4:30 p.m., below the grid’s predicted consumption of 87,638 megawatt for that time, according to PJM’s website. Prices climbed earlier on the 13-state grid as above-normal temperatures boosted demand.

Spot power at PJM’s benchmark Western hub fell $1.10, or 3.3 percent, to average $31.99 a megawatt-hour during the hour ended at 4 p.m. from the same time yesterday, grid data shows.

Power at the Eastern hub, which includes New Jersey, fell 92 cents, or 2.7 percent, to $32.51 a megawatt-hour. On-peak Western hub prices traded at a 12 cent premium to the East, narrower than 23 cents yesterday.

Prices gained in Boston after Entergy Corp.’s Pilgrim 1 nuclear reactor shut automatically yesterday because of the loss of one of two 345-kilovolt lines that provide offsite power.

The unit, which is about 4 miles (6 kilometers) east of Plymouth, Massachusetts, will return to service following restoration of power and completion of maintenance, said Carol Wightman, a spokeswoman for the New Orleans-based company.

Power in Boston rose $11.06, or 33 percent, to $44.34 a megawatt-hour at 4 p.m. from a day earlier. The shutdown helped send New York prices higher because of lower imports from New England, said Matthew Oatway, a Boston-based analyst for Genscape Inc., which tracks real-time power data.

New York

“It’s lent some strength to the region and contributed to a growing list of generation outages,” he said.

Spot power in New York City rose $2.33, or 5.9 percent, to $41.83 a megawatt-hour at 4 p.m. Demand was 8 percent higher than a day earlier at 6,588 megawatts, grid data show.

Prices in Northern California dropped $7.94, or 19 percent, to $33.35 a megawatt-hour for the hour ended at 2 p.m. local time from the same time yesterday, grid data show. Southern California power fell $7.85, or 19 percent, to $34.37.

Pacific Gas & Electric Co. cut output at the Diablo Canyon 1 nuclear reactor to 50 percent of capacity yesterday to carry out “necessary work on a feed-water pump,” said Thomas Cuddy, a spokesman for the San Francisco-based company. The plant is located 160 miles northwest of Los Angeles.