Texas Power Gains Amid Higher Use and Lower-Than-Forecast Wind

Texas on-peak power prices rose to the highest in more than a week as demand gained and wind output slid.

Use on the Electric Reliability Council of Texas Inc. network averaged 34,718 megawatts for the hour ended at 2 p.m. local time, versus the day-ahead forecast of 34,274 megawatts, according to the grid website. Wind production was 3,484 megawatts at 1:55 p.m., below the day-ahead forecast of 3,597 megawatts. Wind accounted for almost 10 percent of Ercot output last year.

The high temperature today in Dallas may reach 68 degrees Fahrenheit (20 Celsius), 3 above normal, according to AccuWeather Inc. in State College, Pennsylvania.

On-peak power at the North hub, which includes Dallas, was up $14.70, or 46 percent, to $47.03 a megawatt-hour at 2 p.m. local time, heading toward the highest full-day average since Nov. 13, grid data compiled by Bloomberg show.

Spot power at the North hub jumped more than sixfold, advancing $35.96 to $42.57 a megawatt-hour for the hour ended at 2 p.m. from the same time yesterday, while at the Houston hub, spot power gained $12.12, or 40 percent, to average $42.57.

Spot power at the Indiana hub, a regional benchmark for the Midwest, reversed earlier gains and fell 2 cents to average $32.59 a megawatt-hour for the hour ended at 2 p.m. local time from the same time yesterday.

Power at PJM Interconnection LLC’s benchmark Western hub, which includes Washington, rose $5.23, or 16 percent, to average $37.33 a megawatt-hour at 3 p.m. New York time, while at the Eastern hub, which includes New Jersey, spot prices advanced $7.28, or 15 percent, to average $57.34.

PJM West on-peak power traded $17.07 below the Eastern hub, compared with a discount of $17.72 yesterday and a three-month average discount of $7.23.

Natural gas for December delivery fell 22.3 cents, or 5 percent, to settle at $4.266 per million British thermal units on the New York Mercantile Exchange. About 27 percent of the power in the U.S. is generated using gas.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE