U.S. Northeast Power Falls as Electricity Use Declines

Spot wholesale electricity slid from New York City to Boston as demand and natural gas fell.

Use on the ISO New England Inc. network was 15,918 megawatts at 12:15 p.m. New York time, below the day-ahead forecast of 16,510 megawatts, according to the grid’s website.

The high temperature today in Providence, Rhode Island, may reach 45 degrees Fahrenheit (7 Celsius), 5 above normal, according to AccuWeather Inc. in State College, Pennsylvania.

Spot power in New York declined $2.99, or 7 percent, to average $39.67 a megawatt-hour for the hour ended at noon from the same time Dec. 19, grid data compiled by Bloomberg show. Boston power dropped $6.88, or 14 percent, to average $41.21.

New York on-peak power traded $2.45 below Boston, compared with a premium of $4.44 on Dec. 19 and a three-month average discount of $5.46 for New York.

Spot power at PJM Interconnection LLC’s benchmark Western hub, which includes Washington, gained $12.33, or 33 percent, to average $49.23 a megawatt-hour at noon, while power at the Eastern hub, which includes New Jersey, slid $4.17, or 9.8 percent, to average $38.18.

PJM West on-peak power traded $5 above the Eastern hub, compared with a discount of $3.23 on Dec. 19 and a three-month average discount of $8.30 for PJM West.

Natural gas for January delivery fell 23 cents, or 6.6 percent, to $3.234 per million British thermal units at 12:30 p.m. on the New York Mercantile Exchange. About 27 percent of the power in the U.S. is generated using gas.

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