Power Prices Fall a Third Day in U.S. East as Hot Weather EasesNaureen S. Malik
Spot wholesale electricity fell to a one-week low from Washington to Chicago after a surge of heat in the East gave way to milder weather.
Prices dropped for a third day on the 13-state PJM Interconnection LLC network as consumers used less power than the grid operator had forecast. The high temperature in Washington today will be 88 degrees Fahrenheit (31 Celsius), 3 above normal, after rising two days earlier to 97, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at PJM’s benchmark Western hub, which includes Washington, slid $10.66, or 21 percent, to average $41.19 a megawatt-hour during the hour ended at 1 p.m. from the same time yesterday, grid data compiled by Bloomberg show.
On-peak prices are down 35 percent at $39.14, heading for the lowest daily average since June 12.
Electricity use on across the PJM grid was 118,843 megawatts at 1:30 p.m., 3.6 percent lower than the amount that was secured in the day-ahead market, according to the Valley Forge, Pennsylvania-based operator’s website. Demand jumped to an 11-month high earlier this week as heat and humidity gripped the East.
PJM’s grid serves more than 60 million people from the mid-Atlantic region to the Midwest.
Spot power for New York City rose 21 cents, or 0.6 percent to $38.22 in the hour ended at 1 p.m. On-peak prices are down 24 percent at $36.12, the lowest level for this week.
The hub for Boston and Northeast Massachusetts fell 69 cents, or 1.6 percent, to $41.31 in the noon hour. Average spot on-peak prices are down 20 percent at $45.66.
On-peak power in New York is trading $4.14 lower than Boston, compared with a $13.98 discount yesterday and a three-month average premium of 71 cents for New York prices.