East Coast Electricity Declines as New York Demand Drops 13%Harry R. Weber
Spot wholesale electricity plunged from Washington to Boston as natural gas prices slid and cooler weather pushed demand lower.
Use in New York City dropped 13 percent to average 9,211 megawatts during the hour ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg show.
The high temperature today in New York was forecast to reach 86 degrees Fahrenheit (30 Celsius), six below yesterday, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power in New York declined $60.06, or 59 percent, to average $41.54 a megawatt-hour for the hour ended at 3 p.m. from the same time yesterday, while Boston power fell $169.15, or 81 percent, to average $40.13.
New York on-peak power traded $2.41 above Boston, compared with a discount of $42.15 yesterday and a three-month average discount of $2.11 for New York.
Spot power at PJM Interconnection LLC’s benchmark Western hub, which includes Washington, dropped $24.63, or 32 percent, to average $52.30 a megawatt-hour at 4 p.m. Prices at the Eastern hub, which includes New Jersey, slid $196.92, or 74 percent, to average $69.59.
PJM West on-peak power traded $1.76 below the Eastern hub, compared with a discount of $62.34 yesterday and a three-month average discount of $8.43 for PJM West.
In Texas, spot power at the North hub, which includes Dallas, declined $7.09, or 16 percent, to average $38.07 a megawatt-hour for the hour ended at 3 p.m. local time from the same time yesterday. Houston hub prices fell $6.30, or 14 percent, to average $38.77.
The Texas price drop came as wind production on the Electric Reliability Council of Texas Inc. network was above expectations at 6,137 megawatts at 3 p.m. versus the day-ahead forecast of 3,738 megawatts. Wind accounted for almost 10 percent of production on the Ercot grid last year.
Natural gas for October delivery slipped 4.3 cents, or 1.1 percent, to $3.847 per million British thermal units on the New York Mercantile Exchange, the lowest settlement since Aug. 22. Gas is down 9.1 percent this year. Power plants account for 31 percent of U.S. gas demand.