New York Power Prices Jump Threefold on Demand SurgeJonathan N. Crawford
Spot electricity in New York City jumped more than threefold as demand soared with hotter weather.
Power consumption in Manhattan and its four neighboring boroughs averaged 9,294 megawatts for the hour ended at 4 p.m., surpassing the day-ahead forecast by 580 megawatts or 6.7 percent, according to data from the New York Independent System Operator Inc., which manages the city’s grid.
The temperature in New York today reached 85 degrees Fahrenheit (29 Celsius) at 4:11 p.m., 1 above the normal high, according to AccuWeather Inc. of State College, Pennsylvania.
Spot prices in New York City, gained $188.89 to average $256.36 a megawatt-hour in the hour ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg show.
“The large variance in day-ahead versus real time demand forced reliance on more expensive, real time-only generation,” said Stefan Baden, a Boston-based analyst with Genscape Inc. who tracks the New York Independent System Operator Inc. market.
NRG Energy Inc.’s 1,139-megawatt Bowline Generating Station failed to power up in the real-time market, driving prices higher, Baden said. The two-unit plant, which runs on natural gas or No. 6 fuel oil, is located in Rockland County, New York.