Power Climbs Across Eastern U.S. as Demand Tops ForecastsJonathan N. Crawford
Spot wholesale electricity gained on the grids stretching from the Northeast to the Midwest as demand topped forecasts.
Power consumption on the 13-state PJM Interconnection LLC network, from the mid-Atlantic region to the Midwest, averaged 114,535 megawatts for the hour ended at 2 p.m., 10 percent higher than the day-earlier period and 1.1 percent more than the forecast for the hour ended at 2:30 p.m., according to the grid manager’s website.
Demand also topped grid forecasts in the New England market, where consumption touched 17,140 megawatts at 2 p.m., 0.8 percent higher than the projected average for the hour ending at 2:30 p.m., according to ISO New England Inc. data.
The high temperature at 2:30 p.m. in Manhattan was 86 degrees Fahrenheit (30 Celsius), 10 above the normal high for the day, while Washington reached 85 degrees, 4 higher than usual, according to AccuWeather Inc. in State College, Pennsylvania. Analysts typically use 65 degrees as a benchmark for weather that requires neither heating nor cooling.
Power at PJM’s benchmark Western hub, which includes prices from Washington to Erie, Pennsylvania, climbed $36.03, or 89 percent, to average $76.40 a megawatt-hour during the hour ended at 2 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
Spot power for the hub for Boston and Northeast Massachusetts increased $2.93, or 8.2 percent, to average $38.89, data from the New England grid manager showed.
With the price gains, Boston spot on-peak power traded at a $4.48 premium to the New York market, versus a discount of $8.32 yesterday and a three-month average discount of $3.13.