Power Climbs on Eastern U.S. Grids as Demand Tops ForecastsNaureen S. Malik
Spot wholesale electricity gained from Boston to Washington as warmer-than-normal weather boosted demand.
Prices in New York rose from a 12-week low and Boston climbed from the lowest level in a week as consumers used more electricity than the regional grid operators had forecasted. Demand on the PJM Interconnection LLC network, from the mid-Atlantic states to the Ohio Valley, topped the day-ahead outlook by 2.5 percent as of 2:30 p.m., according to its website.
The high temperature in Boston today may be 72 degrees Fahrenheit (22 Celsius), 11 above normal, according to AccuWeather Inc. in State College, Pennsylvania. Washington may be 8 higher than the usual reading, at 76 degrees.
Spot power for New York City more than doubled, gaining $33.73 to average $62.60 a megawatt-hour during the hour ended at 3 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
On-peak prices in the city are up 94 percent as of 3 p.m. at $50.17 from yesterday’s full-day average of $24.21, which was the least since July 25.
New York traded at a 15-cent premium of versus the Hudson Valley zone versus 10 cents yesterday and at a $5.90 premium to Boston after trading at a discount of $5.49 yesterday. Boston spot prices increased $20.23, or 68 percent, to $50.04.
The unplanned shutdown of a Massachusetts nuclear reactor this week and a scheduled halt in hydropower imports from Quebec limited the Northeast’s supply of cheaper sources of electricity. Hydro-Quebec imports dropped to zero on Oct. 12 from 1,417 megawatts on the New York 7040 line, daily reports from the New York Independent System Operator Inc. show.
Entergy Corp.’s Pilgrim 1 nuclear reactor tripped offline on Oct. 14 because of the loss of one of two 345-kilovolt lines that provide offsite power to the plant, according to a U.S. Nuclear Regulatory Commission report today.
Pilgrim, about 4 miles (6 kilometers) east of Plymouth, Massachusetts, has nameplate capacity of 670 megawatts, Energy Information Administration data show.
PJM’s benchmark Western hub, which includes deliveries to Washington, were up $5.09, or 15 percent, to $38.19 a megawatt-hour. On-peak power at the hub traded at a $1.42 premium to the Eastern hub, compared with a 20-cent discount yesterday. The Eastern hub includes prices in New Jersey, eastern Pennsylvania, Virginia and Maryland.
Demand on the 13-state grid was 89,581 megawatts at 2:30 p.m., above the day-ahead forecast of 87,433 megawatts for the hour, according to PJM’s website.
Texas spot prices were lower while California gained.