Power Drops on Eastern U.S. Grids as Milder Weather Trims DemandNaureen S. Malik
Spot wholesale electricity declined on the eastern U.S. grids as a winter storm gave way to milder weather, reducing heating demand.
On-peak power dropped to a one-month low on the 13-state PJM Interconnection LLC network, which stretches from the mid-Atlantic region to the Midwest, while New York prices slid to a two-week low. Washington’s temperature was 62 degrees Fahrenheit (17 Celsius), 14 above normal, at 4:12 p.m. today, while Manhattan’s reading was 45 degrees, 3 above normal, according to AccuWeather Inc. in State College, Pennsylvania.
Spot prices for the on-peak hours at PJM’s benchmark Western hub, which includes deliveries to Washington, slid $9.76, or 19 percent, to average $42.89 a megawatt-hour as of 4 p.m., the least since Jan. 20, grid data compiled by Bloomberg showed. On-peak hours are from 7 a.m. until 11 p.m.
Prices at the weakened as the afternoon progressed, dropping to $35.63 at 4 p.m. as power consumption matched forecasts.
On-peak electricity for New York City slumped $25.34, or 20 percent, to average $100.58 a megawatt-hour as of 4 p.m., the least since Feb. 4. The hourly price at 4 p.m. was down 38 percent to average $63.64.
Average prices for the Boston and Northeast Massachusetts hub for peak power dropped $13.50, or 7 percent, to $178.32. Hourly prices, which dropped through much of the day, jumped 40 percent to average $232.33 at 4 p.m. as demand topped forecasts, according to ISO New England Inc.’s website.
The premium for on-peak power in Boston versus New York widened to $77.74 from yesterday’s average of $65.91.
Texas electricity reversed earlier gains as demand slipped below the grid operator’s day-ahead projections. The Electric Reliability Council of Texas Inc.’s North hub, which serves Dallas, fell $7.39, or 22 percent, to average $26.64 a megawatt-hour during the hour ended at 3 p.m. local time. Average on-peak prices fell 28 percent at $29.15.