Texas Spot Electricity Gains as Demand Grid ForecastsJonathan N. Crawford
Power in the Texas market advanced as warmer-than-expected weather stoked demand to run air conditioning.
The high temperature in Dallas today was forecast to be 85 degrees Fahrenheit (29 Celsius), 7 more than normal, according to AccuWeather Inc. of State College, Pennsylvania.
Power consumption on the grid covering most of Texas exceeded projections by 1,212 megawatts, or 2.9 percent, to average 42,446 megawatts in the hour ended at 2 p.m. local time, according to the Electric Reliability Council of Texas Inc., which manages the system.
Prices also gained amid lower-than-projected generation from wind power. Wind turbines produced 1,352 megawatts during the period, lagging behind projections by 796 megawatts, data on the Ercot’s website showed. One megawatt is enough to power about 200 homes during peak demand periods.
Spot wholesale electricity in the Texas North hub, which includes Dallas and Fort Worth, jumped $7.08, or 23 percent, to average $37.85 a megawatt-hour during the hour ended at 2 p.m. local time from the same time yesterday, grid data compiled by Bloomberg showed.
Power in the Houston hub also gained, climbing $7.54, or 25 percent, to average $38.31.
On-peak power in the North hub traded 19 cents less than the Houston hub, flipping from a 22-cent premium yesterday, and compared with a three-month average discount of 30 cents to Houston, data compiled by Bloomberg show.