Texas Electricity Prices Gain Amid Below-Forecast Wind OutputHarry R. Weber
Spot wholesale electricity in Texas rose as wind production was below forecast on the grid that serves most of the state.
Wind output on the Electric Reliability Council of Texas Inc. network averaged 2,440 megawatts at 3 p.m. local time, below the day-ahead forecast of 2,795 megawatts, according to the grid’s website. Wind accounted for almost 10 percent of power on the Ercot grid last year.
The high temperature today in Houston may reach 91 degrees Fahrenheit (33 Celsius), unchanged from yesterday, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the North hub, which includes Dallas, advanced $8.06, or 17 percent, to average $56.71 a megawatt-hour at 3 p.m. local time from the same time yesterday, grid data compiled by Bloomberg show. Houston hub prices gained $7.73, or 16 percent, to average $56.08.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power fell 28 cents, or 0.7 percent, to average $40.38 a megawatt-hour for the hour ended at 4 p.m. New York time from the same time yesterday. Eastern hub prices rose $4.71, or 15 percent, to average $36.13.
PJM West on-peak power traded $5.53 above the Eastern hub, compared with a premium of $1.55 yesterday and a three-month average discount of $3.28 for PJM West.
New York City power advanced $7.31, or 18 percent, to average $47.61 a megawatt-hour at 4 p.m., while Boston power fell $6.39, or 15 percent, to average $35.11.
New York on-peak power traded 50 cents below Boston, compared with a discount of $4.89 yesterday and a three-month average discount of 13 cents for New York.
Natural gas in New York slid 1.2 percent as futures capped the first weekly decline in four weeks on speculation that easing heat will limit demand for the power-plant fuel. Power plants account for 31 percent of U.S. gas demand.