idwest Power Drops With Use Below Day-Ahead ForecastsHarry R. Weber
Spot wholesale electricity slid in the Midwest as demand fell short of expectations during mild weather. Prices rose in Texas as wind production was below forecast.
Power use on the Midcontinent Independent System Operator Inc. network, which stretches from Canada to the Gulf Coast, was 85,546 megawatts at 2:15 p.m. local time, versus the day-ahead forecast of 86,636 megawatts, according to the grid’s website.
The high temperature today in Indianapolis may reach 76 degrees Fahrenheit (24 Celsius), 8 below yesterday, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the Indiana hub, a benchmark for the Midwest, declined $41.25, or 50 percent, to average $40.64 a megawatt-hour for the hour ended at 1 p.m. local time from the same time yesterday, grid data compiled by Bloomberg show.
In Texas, prices at the North hub, which includes Dallas, advanced $6.60, or 15 percent, to average $50.81 for the hour ended at 2 p.m. local time from the same time yesterday. Houston hub prices gained $6.90, or 16 percent, to average $50.36.
Wind production on the Electric Reliability Council of Texas Inc. network averaged 3,719 megawatts at 2 p.m., versus the day-ahead forecast of 4,342 megawatts, the grid’s website shows. Wind production accounted for almost 10 percent of generation on the Ercot network last year.
Spot power in New York rose $2.63, or 5.3 percent, to average $52.28 for the hour ended at 3 p.m.. Prices dropped earlier as Exelon Corp. boosted its Ginna 1 reactor near Rochester, New York, to 50 percent of capacity from 2 percent yesterday, adding supplies to the grid, according to the U.S. Nuclear Regulatory Commission.
Boston power advanced $9.63, or 19 percent, to average $59.77.
New York on-peak power traded $2.52 above Boston, compared with a premium of $7.63 yesterday and a three-month average discount of $4.73 for New York.
Natural gas futures fell in New York after a government report showed that U.S. inventories rose more than forecast. Gas dropped 2.5 percent after the Energy Information Administration said stockpiles increased by 106 billion cubic feet in the week ended May 16 to 1.266 trillion. Analyst estimates showed a gain of 103 billion, as did a survey of Bloomberg users.
About 31 percent of U.S. gas supplies are consumed by electricity generators.