Spot Power Advances in Northeastern Markets Amid Colder WeatherJonathan N. Crawford
Wholesale power from Boston to New York City jumped as colder-than-normal weather stoked heating demand in the region.
A blast of frigid weather Thursday was forecast to drive peak power consumption in the six-state grid managed by ISO New England Inc. 6.6 percent higher than a day earlier, data from the system operator showed.
ISO New England expected 2,567 megawatts of generation, or about 8.3 percent of grid capacity, to be out of service because of cold weather.
The low temperature in Boston was forecast to be 2 degrees Fahrenheit (minus 17 Celsius), 21 below normal, according to AccuWeather Inc. of State College, Pennsylvania.
“Around noon, strong Boston hub pricing was observed due to a combination of stronger-than-forecasted load due to cold temperatures and less imports from New York than scheduled,” said Lindsey Cohen, a Boston-based power analyst at Genscape Inc., who covers the New England market.
Spot wholesale power for the benchmark hub for Boston and Northeast Massachusetts gained $18.37, or 28 percent, to average $83.82 a megawatt-hour during the hour ended at 3 p.m. New York time from a day earlier, grid data compiled by Bloomberg showed.
Cold weather in New York City sent consumption at 3 p.m. 2.4 percent higher than a day earlier. This came as the New York Independent System Operator Inc., which manages the grid, said 5,918 megawatts, accounting for 16 percent of the system’s generation, would be offline on Thursday.
The low temperature in New York was forecast to be 8 degrees, 20 below the normal, AccuWeather said.
Spot power in Manhattan and its four neighboring boroughs advanced $16.62, or 27 percent, to average $79.01 a megawatt-hour at 3 p.m.
On-peak power in Boston traded $7.68 more than New York, narrowing from a $20.25-premium a day earlier, and compared with a three-month average premium of $9.31 for the New England benchmark.