Power Prices in Boston Drop as Demand Below Day-Ahead ForecastHarry R. Weber
Spot wholesale electricity prices fell in the Northeast as mild weather reduced demand below expectations.
Power use on the ISO New England Inc. network averaged 15,126 megawatts at 4:10 p.m. New York time, versus the day-ahead forecast of 15,270 megawatts, the grid’s website shows.
The temperature today in Boston reached 45 degrees Fahrenheit (7 Celsius) at 4:10 p.m., 10 above yesterday’s high, according to AccuWeather Inc. in State College, Pennsylvania. In New York City, it was 42 degrees, 6 above yesterday’s high.
Spot power in Boston slid $74.75, or 63 percent, to average $43.62 a megawatt-hour for the hour ended at 4 p.m. from the same time yesterday, while New York City power declined $2.77, or 4.1 percent, to average $65.07, grid data compiled by Bloomberg show.
New York on-peak power traded $12.39 below Boston, compared with a discount of $66.38 yesterday and a three-month average discount of $12.66 for New York.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power fell $5.49, or 13 percent, to average $38.52 at 4 p.m., while prices at the Eastern hub, which includes New Jersey, slid $54.37, or 58 percent, to average $40.
PJM West on-peak power traded $2.05 below the Eastern hub, compared with a discount of $26.11 yesterday and a three-month average discount of $18.24 for PJM West.
Spot power at the Indiana hub, a regional benchmark for the Midwest, declined $9.04, or 22 percent, to average $31.53 for the hour ended at 2 p.m. local time.