Power Rises From Washington to Minnesota as Demand Tops ForecastNaureen S. Malik
Spot wholesale electricity advanced on grids stretching from Washington through the Midwest as demand topped forecasts.
Power consumption on the 13-state PJM Interconnection LLC network, from Washington to Chicago, was 106,335 megawatts at 1:30 p.m., 6.7 percent higher than the day-ahead outlook for the hour, according to PJM’s website. Demand on the central U.S. grid from the Midwest to Louisiana’s coast was also above projections, while wind generation was half the expected rate.
A storm system will spread some rain and snow from the Midwest to the mid-Atlantic and Northeast states today, according to WSI Corp. in Andover, Massachusetts. Washington’s high will be 42 degrees Fahrenheit (6 Celsius), 1 below normal, while Minneapolis’s will be 32, 9 above the norm, said AccuWeather Inc.
Spot electricity at PJM’s benchmark Western hub, which includes deliveries to Washington, rose $17.72, or 45 percent, to $57.52 a megawatt-hour during the hour ended at 1 p.m. from the same time yesterday, grid data compiled by Bloomberg show. On-peak power was up 2.2 percent to $52.79.
Prices in the mid-Atlantic region of PJM jumped to more than $160 briefly at about 11 a.m. after the grid operator issued a warning to reduce demand at a transformer in Pennsylvania, according to its website.
Spot power climbed across the central U.S. grid managed by the Midcontinent Independent Transmission System Operator Inc. Its Indiana hub gained $3.79, or 12 percent, to average $36.16 a megawatt-hour during the hour ended at noon local time, while the Minnesota hub rose $8.10, or 24 percent, to $42.59.
Electric use on the 15-state grid, from North Dakota to Louisiana, was 83,013 megawatts during the hour ended at 2 p.m., 2.8 percent lower than the amount secured the previous day for that period, according to MISO. Generation from wind turbines in the region was 2,719 megawatts during the hour ended at 1 p.m., 55 percent lower than the day-ahead forecast of 6,056 megawatts, the grid operator’s website showed.
Spot prices slumped in the Northeast and Texas as mild weather reduced demand.