Texas Power Gains Amid Higher Use and Lower-Than-Forecast WindHarry R. Weber
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.