Texas Electricity Prices Rise as Power Demand Exceeds Forecast

Spot wholesale electricity prices jumped in Texas as power demand exceeded expectations.

Power consumption on the Electric Reliability Council of Texas Inc. network averaged 33,235 megawatts during the hour ended at 3 p.m. local time, a 1 percent increase versus the day-ahead forecast of 32,893 megawatts, according to the grid’s website.

The high temperature today in Houston may reach 74 degrees Fahrenheit (23 Celsius), 3 above average, according to AccuWeather Inc. in State College, Pennsylvania.

Spot prices at the Texas North hub, which includes Dallas, and at the Houston hub advanced $4.68, or 17 percent, to average $32.60 a megawatt-hour for the hour ended at 3 p.m. from the same time March 7, data compiled by Bloomberg show.

At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot prices fell $5.81, or 14 percent, to average $36.87 a megawatt-hour for the hour ended at 4 p.m. New York time from the same time March 7. Prices at the Eastern hub, which includes deliveries to New Jersey, slid $7.29, or 16 percent, to average $39.61.

New York City prices declined $20.12, or 32 percent, to average $43.23 a megawatt-hour while Boston prices gained $4.97, or 4.3 percent, to average $120.47.

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