Power Declines From Houston to Minneapolis as Demand FallsHarry R. Weber
Spot wholesale electricity slid from Texas to the Midwest as demand fell and wind output rose.
Use on the Electric Reliability Council of Texas Inc. network averaged 32,555 megawatts for the hour ended at 10 a.m. local time, versus the day-ahead forecast of 34,323, according to the grid’s website. Wind production, which accounted for 13 percent of Ercot capacity as of May, averaged 7,988 megawatts at 9 a.m., versus the day-ahead forecast of 7,795.
The high temperature today in Houston may reach 71 degrees Fahrenheit (22 Celsius), 8 above normal, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the North hub, which includes Dallas, declined 90 cents, or 5 percent, to average $17.32 a megawatt-hour for the hour ended at 10 a.m. from the same time yesterday, grid data compiled by Bloomberg show. Power at the Houston hub slid $1.61, or 8.5 percent, to average $17.32.
At the Indiana hub, a regional benchmark for the Midcontinent Independent System Operator Inc. network, spot power fell $3.81, or 13 percent, to average $26.03 a megawatt-hour at 10 a.m. Power at the Minnesota hub declined $4.86, or 18 percent, to average $22.98. MISO use was 72,939 megawatts at 11:15 a.m. N.Y. time, below the day-ahead forecast of 73,304 megawatts.
Natural gas for January delivery fell 2.4 cents, or 0.8 percent, to $3.006 per million British thermal units as of 11:43 a.m. on the New York Mercantile Exchange. Earlier, futures touched $2.973, the lowest since Sept. 26, 2012. About 27 percent of the power in the U.S. is generated using gas.