California Power Jumps as Heat Wave Seen Driving DemandJonathan N. Crawford and Lynn Doan
Wholesale power in the California market rose on forecasts for electricity use to hover near a 2014 high as a heat wave boosted demand to run air conditioning.
The high temperature in Los Angeles today was forecast to be 94 degrees Fahrenheit (34 Celsius), 11 above normal, while San Francisco’s high will be 71 degrees, 1 more than usual, according to AccuWeather Inc. in State College, Pennsylvania.
Power in Northern California’s NP15 hub, which includes deliveries to San Francisco, gained 67 cents, or 1.3 percent, to average $51.27 a megawatt-hour in the hour ended at 1 p.m. local time from the same time yesterday, grid data compiled by Bloomberg show.
At the SP15 hub, serving Los Angeles and San Diego, power fell 76 cents, or 1.5 percent, to average $51.38.
Average on-peak power at the northern hub traded $1.36 below power in the south, compared with a $16.11 discount yesterday, and a three-month average premium of 1 cent for the northern hub.
The heat in Los Angeles was expected to subside tomorrow, with a forecast high of 85 degrees, ending a six-day streak of temperatures above 90, according to AccuWeather.
The California ISO lifted a restriction on transmission maintenance in the southern part of the state late yesterday.
More than 3,500 people were without power in Southern California Edison’s territory as of 9:51 a.m. local time, according to the company’s website.
Electricity prices fell in PJM Interconnection LLC’s 13-state market, extending from the Midwest to the mid-Atlantic, as demand on the grid was near forecasts.
Power at PJM’s Western hub, which includes deliveries to Washington, dropped $9.41, or 23 percent, to average $31.69 a megawatt-hour at 4 p.m. New York time.