Midwest Electricity Prices Rise as Demand Exceeds ExpectationsHarry R. Weber
Spot wholesale electricity in the Midwest rose as demand exceeded forecasts. Texas prices reversed earlier gains.
Power use on the Midcontinent Independent System Operator Inc. network, which stretches from Canada to the U.S. Gulf Coast, averaged 73,297 megawatts at 3:15 p.m. local time, versus the day-ahead forecast of 71,272 megawatts, according to the grid’s website.
The high today in Indianapolis was forecast to reach 53 degrees Fahrenheit (12 Celsius), 1 below average, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the Indiana hub, a regional benchmark for the Midwest, advanced $10, or 34 percent, to average $39.22 a megawatt-hour for the hour ended at 2 p.m. local time from the same time yesterday, grid data compiled by Bloomberg show.
In Texas, spot power at the North hub, which includes Dallas, fell $7.73, or 17 percent, to average $36.83 a megawatt-hour for the hour ended at 3 p.m. after rising for most of the day on lower wind generation than forecast. Houston hub prices slid $3.32, or 8.3 percent, to average $36.83.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power fell $11.03, or 22 percent, to average $40.03 a megawatt-hour for the hour ended at 4 p.m. Prices at the Eastern hub, which includes New Jersey, declined $12.33, or 23 percent, to average $41.80.
PJM West on-peak power traded $2.60 below the Eastern hub, compared with a discount of $4.39 yesterday and a three-month average discount of $16.98.
New York City power fell $40.81, or 56 percent, to average $32.31 a megawatt-hour at 4 p.m., while Boston power gained $3.42, or 8.7 percent, to average $42.79.
New York on-peak power traded $4.51 below Boston, compared with a premium of $38.48 yesterday and a three-month average discount of $13.55 for New York.