Eastern U.S. Spot Power Drops as Demand Matches ForecastsNaureen S. Malik
Spot wholesale electricity surged to a nine-week high in Texas as Dallas heat spurs air-conditioner use.
The Electric Reliability Council of Texas Inc. raised its peak-demand forecast for today by 6.4 percent to 59,340 megawatts during the hour ending at 5 p.m. local time from yesterday’s outlook. Ercot manages the power to 24 million customers, representing 85 percent of the state’s demand.
Temperatures will be more seasonably hot today after a chance of scattered showers and storms, said WSI Corp. in Andover, Massachusetts. The high in Dallas will reach 95 degrees Fahrenheit (35 Celsius), 1 lower than average, after dropping on Aug. 1 to 82 degrees, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at Ercot’s North hub, which includes Dallas, rose almost sixfold, jumping $199.02 to $239.43 a megawatt-hour in the hour ended at 3 p.m. local time from the same time on Aug. 1, Grid data compiled by Bloomberg show.
On-peak prices were up $22.88, or 69 percent, at $56.63, heading for the highest daily average since May 30.
Wind generation dropped below forecasts, cutting supply as demand gained, Ercot’s website showed. Turbine output fell to 171 megawatts in the hour ended at 3 p.m., 83 percent lower than the day-ahead outlook of 1,020 megawatts for the hour.
Spot prices rebounded in the U.S. East as hotter weather spurred air-conditioning needs. Morning fog in the Northeast burned off, giving way to sunshine in the Northeast, while the mid-Atlantic will see “fair and seasonable conditions” across most of the grid, said WSI Corp. in Andover, Massachusetts.
Demand on the 13-state PJM Interconnection LLC network, serving more than 61 million people from the mid-Atlantic region to the Midwest, will climb to 125,195 megawatts today, the most since July 23, according to its website. New York City consumption jumped 2.7 percent above the grid operator’s projections at 4:15 p.m. after earlier matching forecasts.
The high temperature in Washington will be a seasonal 88 degrees, after dropping to 8 below at 80 degrees on Aug. 1, according to AccuWeather. Boston’s was forecast to reach 80 degrees and Manhattan will be 83, 1 lower than average for both cities.
Spot power at PJM’s benchmark Western hub, which includes Washington, jumped $15.89, or 44 percent, to $52.23 a megawatt-hour in the hour ended at 4 p.m. from the same time on Aug. 1, grid data compiled by Bloomberg show.
In New England, the hub for Boston and Northeast Massachusetts increased by $17.36, or 47 percent, to $54.52. New York City rose $2.51, or 5.1 percent, to $52.01.