Midwest On-Peak Power Poised for Two-Month HighHarry R. Weber
Midwest on-peak power jumped to the highest price in two months as demand on the Midcontinent Independent System Operator Inc. network exceeded expectations amid colder-than-normal weather.
Use was 75,376 megawatts at 4:10 p.m. New York time, versus the day-ahead forecast of 74,567 megawatts, according to the grid’s website.
On-peak power at the Indiana hub, a regional benchmark, was up $15.64, or 43 percent, to $51.68 a megawatt-hour at 3 p.m. local time, heading toward the highest full-day average since Sept. 5, according to grid data compiled by Bloomberg.
Spot power rose 29 cents, or 0.9 percent, to average $32.10 a megawatt-hour for the hour ended at 3 p.m. from the same time yesterday, while Minnesota power advanced $2.61, or 12 percent, to average $24.09.
The low temperature today in Minneapolis was expected to drop to 31 degrees Fahrenheit (minus 1 Celsius), 6 below yesterday, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the Texas North hub, which includes Dallas, gained $3.01, or 11 percent, to average $30.44 a megawatt-hour for the hour ended at 3 p.m. from the same time yesterday, while Houston hub prices rose $2.97, or 11 percent, to average $30.44. Wind output on the Electric Reliability Council of Texas Inc. network averaged 557 megawatts at 3 p.m., below the day-ahead forecast of 2,262 megawatts, according to the grid’s website. Wind accounted for almost 10 percent of production on the Ercot grid last year.
New York City power fell $1.95, or 7.1 percent, to average $25.45 a megawatt-hour for the hour ended at 4 p.m. New York time from the same time yesterday, while Boston power slid $11.08, or 28 percent, to average $29.
New York on-peak power traded $2.38 below Boston, compared with a discount of $16.45 yesterday and a three-month average discount of $2.16 for New York.
Natural gas for December delivery rose 6.5 cents, or 1.6 percent, to $4.194 per million British thermal units on the New York Mercantile Exchange, the highest settlement since July 8. About 27 percent of the power in the U.S. is generated using gas.