New York Power Advances as Blast of Cold Stokes Heating Demand

Spot wholesale power in New York City advanced as a blast of frigid air sweeping the region may send peak power consumption to a two-week high.

Demand in Manhattan and its four neighboring boroughs was forecast to reach 7,238 megawatts Wednesday, the highest since Jan. 14, according to data from the grid manager. Electricity use averaged 6,991 megawatts in the hour ended at 3 p.m. New York time, surpassing day-earlier levels by 11 percent.

The low temperature in New York was forecast to be 17 degrees Fahrenheit (minus 8 Celsius), 10 below normal, according to AccuWeather Inc. of State College, Pennsylvania.

Spot wholesale power for New York gained $17.19, or 36 percent, to average $65.60 a megawatt-hour during the hour ended at 3 p.m. from a day earlier, grid data compiled by Bloomberg showed. On-peak power in New York City averaged $66.76 at 3 p.m. Wednesday, up 24 percent from the day-earlier full-day average, and the highest since Jan. 14. The grid’s peak-demand hours are from 7 a.m. until 11 p.m.

In ISO New England Inc.’s benchmark hub for Boston and Northeast Massachusetts, power gained $8.65, or 15 percent, to average $67.76 a megawatt-hour.

ISO New England forecasts extreme weather for Jan. 31 and Feb. 3, according to alerts by the system manager.

Average on-peak power in New York traded $9.86 below Boston, narrowing from a $20.69 discount Tuesday and compared with a three-month average discount of $8.27 a megawatt-hour for New York.

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