Electricity Advances From New York to Boston as Demand RisesHarry R. Weber
Spot wholesale electricity jumped in the Northeast as natural gas futures rose and demand exceeded expectations.
Consumption on the ISO New England Inc. network was 21,069 megawatts at 4:10 p.m. New York time, versus the day-ahead forecast of 20,700 megawatts, according to the grid’s website.
The temperature today in Boston reached 88 degrees Fahrenheit (31 Celsius), 9 above the normal high, according to AccuWeather Inc. in State College, Pennsylvania.
Boston power tripled, advancing $101.05 to average $149.65 a megawatt-hour at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg show. New York City spot power gained $35.22, or 70 percent, to average $85.51.
New York on-peak power traded $11.60 below Boston, compared with a premium of $6.03 yesterday and a three-month average discount of 13 cents.
Natural gas futures rose for a second day in New York on speculation that hotter weather will boost demand for electricity. Power plants account for 31 percent of U.S. gas demand. Gas for July delivery rose 1.8 cents, or 0.4 percent, to settle at $4.553 per million British thermal units on the New York Mercantile Exchange.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power reversed earlier gains and fell $17.23, or 19 percent, to average $74.50 a megawatt-hour at 4 p.m. Prices at the Eastern hub, which includes New Jersey, advanced $49.33, or 46 percent, to average $155.56, as operators at PPL Corp.’s Susquehanna nuclear power plant near Berwick, Pennsylvania, began shutting Unit 2 to inspect its turbine blades. Unit 1 continued to operate at full power, PPL said in a statement today.
PJM West on-peak power traded $87.49 below the Eastern hub, compared with a discount of $8.25 yesterday and a three-month average discount of $4.26.
In the Midwest, spot power at the Indiana hub, a regional benchmark, slid $12.60, or 20 percent, to average $50.52 a megawatt-hour for the hour ended at 2 p.m. local time from the same time yesterday.
The Midcontinent Independent System Operator Inc., based in Carmel, Indiana, added its Gulf Coast territory to its network in December 2013.
Output at Entergy Corp.’s Grand Gulf reactor near Vicksburg, Mississippi, rose to 82 percent from 58 percent yesterday, according to the U.S. Nuclear Regulatory Commission. Nameplate capacity at the unit is 1,373 megawatts.