Electricity Prices Fall on U.S. East Coast as Use Drops

On-peak power in New York City headed toward the lowest full-day average in more than two years as mild weather reduced consumption.

Use in New York slid 4.1 percent to average 7,196 megawatts during the hour ended at 10 a.m. from the same time yesterday, grid data compiled by Bloomberg showed.

The high temperature today in New York may reach 83 degrees Fahrenheit (28 Celsius), 1 below the historical average, according to AccuWeather Inc. in State College, Pennsylvania.

On-peak power in New York fell 32 percent to $24.15 a megawatt-hour as of 10 a.m., putting it on track for the lowest full-day average since June 13, 2012.

New York spot power dropped $4.80, or 15 percent, to average $26.71 a megawatt-hour at 10 a.m., according to grid data compiled by Bloomberg. Boston power gained $11.17, or 33 percent, to average $44.58.

New York on-peak power traded $2.71 below Boston, compared with a premium of $5.53 yesterday and a three-month average discount of $1.71 for New York.

On-peak power at PJM Interconnection LLC’s benchmark Western hub, which includes Washington, declined 28 percent to $27.02 a megawatt-hour as of 10 a.m. while prices at the Eastern hub, which includes New Jersey, dropped to $24.29. Both markets are heading for the lowest full-day average since Jan. 29, 2013.

PJM West spot power fell $4.42, or 14 percent, to average $27.67 a megawatt-hour at 10 a.m., while spot power at the Eastern hub dropped $8.18, or 25 percent, to average $24.66.

PJM West on-peak power traded $2.74 above the Eastern hub, compared with a discount of 39 cents yesterday and a three-month average discount of $5.91 for PJM West.

Natural gas for September delivery rose 4.6 cents, or 1.2 percent, to $3.922 per million British thermal units at 11:19 a.m. on the New York Mercantile Exchange. Prices are up 19 percent from a year ago. Power plants account for 31 percent of U.S. gas demand.

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