Texas Power Prices Drop on Below-Forecast DemandHarry R. Weber
Spot wholesale electricity slid in Texas as demand dropped below forecasts.
Power consumption on the Electric Reliability Council of Texas Inc. network was 41,381 megawatts at 1 p.m. local time, below the day-ahead forecast for 42,903 megawatts, according to data on the grid’s website.
The high temperature today in Houston may reach 85 degrees Fahrenheit (29 Celsius), 6 below yesterday, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the Texas North hub, which includes Dallas, declined $8.44, or 20 percent, to average $33.08 a megawatt-hour for the hour ended at 1 p.m. from the same time yesterday, grid data compiled by Bloomberg show. Houston hub prices dropped $8.07, or 20 percent, to average $32.89.
New York City spot power gained $2.57, or 7.8 percent, to average $35.40 a megawatt-hour at 2 p.m. while Boston power fell $7.03, or 22 percent, to average $25.49. Use on the ISO New England Inc. network was 14,269 megawatts at 2:20 p.m., versus the day-ahead forecast of 14,410 megawatts.
New York on-peak power traded $3.17 above Boston, compared with a discount of $4.35 yesterday and a three-month average discount of $2.43 for New York.
Natural gas for November delivery gained 10.7 cents, or 2.7 percent, to settle at $4.039 per million British thermal units on the New York Mercantile Exchange. Power plants account for 31 percent of U.S. gas demand.