Power Prices Climb From New York to Virginia Amid Cold WeatherChristine Buurma
Spot wholesale electricity gained on the grids stretching from New York to Virginia and Chicago as below-normal temperatures stoked demand.
Power consumption for New York City exceeded grid operators’ day-ahead forecasts. Demand on the PJM Interconnection LLC system was up 2.1 percent at 3:30 p.m. from the same time yesterday, according to its website.
The low temperature in New York was forecast to be 42 degrees Fahrenheit (6 Celsius), 5 below normal, and Washington may be 8 less than average at 40 degrees, AccuWeather Inc. said on its website.
Spot prices for New York City advanced $10.14, or 28 percent, to $45.84 a megawatt-hour during the hour ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
Electricity at PJM’s benchmark Western hub, which includes deliveries to Washington, was up $3.23, or 9.9 percent, to $35.70 a megawatt-hour. The Eastern hub gained 9.7 percent to $36.84 a megawatt-hour.
On-peak prices at the Eastern hub, including New Jersey, Maryland, eastern Pennsylvania and Virginia, traded at an 86-cent premium to the western part of the grid compared with 82 cents yesterday.
Demand on the 13-state PJM network, from the mid-Atlantic states to the Ohio Valley, was 88,992 megawatts at 3:30 p.m., 3.3 percent higher than the day-ahead outlook. Power consumption was 87,768 megawatts at the same time yesterday.
Texas power prices slipped as demand fell short of day-ahead forecasts, Electric Reliability Council of Texas Inc. data show.
Ercot’s North hub, serving Dallas, fell $4.10, or 14 percent, to $24.70 a megawatt-hour during the hour ended at 3 p.m. local time from the same time yesterday.
California prices slumped as demand dropped 1.6 percent in the hour ended at noon local from a day earlier. Southern California’s SP15 hub tumbled $33.08, or 51 percent, to $32.18.
On-peak power for NP15 traded at a discount of $8.02 to the SP15 hub, compared with $11.58 yesterday.