Power Prices in Boston Rise as Colder Weather Increases DemandHarry R. Weber
Spot wholesale electricity jumped in Boston as lower temperatures boosted consumption on the ISO New England Inc. grid.
Use was 16,415 megawatts at 12:15 p.m. New York time, above the day-ahead forecast of 16,380 megawatts, according to the grid’s website.
The low temperature Wednesday in Boston was expected to be 20 degrees Fahrenheit (minus 7 Celsius), 2 below average for the day, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power in Boston rose $23.20, or 67 percent, to average $58.01 a megawatt-hour at noon from the same time Tuesday, grid data compiled by Bloomberg show. New York City power gained $12.36, or 40 percent, to average $43.57.
New York on-peak power traded $6.80 below Boston, compared with a premium of $9.14 on Tuesday and a three-month average discount of $7.36 for New York.
In the Midwest, spot power at the Indiana hub, a regional benchmark, fell 97 cents, or 3.4 percent, to average $27.41 a megawatt-hour at 11 a.m. local time. Power at the Minnesota hub slid 82 cents, or 3.1 percent, to average $25.61.
Natural gas for February delivery rose 6.7 cents, or 2.4 percent, to $2.898 per million British thermal units at 12:56 p.m. on the New York Mercantile Exchange. About 27 percent of power in the U.S. is generated using gas.