Texas Electricity Gains as Demand Rises While Wind Output FallsHarry R. Weber
Spot wholesale electricity jumped in Texas as wind output was less than half the day-ahead forecast and demand rose amid colder-than-normal weather.
Use on the Electric Reliability Council of Texas Inc. network averaged 50,880 megawatts for the hour ended at 2 p.m. local time, above the day-ahead forecast of 49,452 megawatts, according to the grid’s website. Wind production averaged 1,858 megawatts at 1 p.m., below the day-ahead forecast of 4,186 megawatts.
The high temperature Monday in Houston was expected to be 45 degrees Fahrenheit (7 Celsius), 23 below normal, according to AccuWeather Inc. in State College, Pennsylvania.
Spot power at the North hub, which includes Dallas, rose $11.35, or 53 percent, to average $32.61 a megawatt-hour for the hour ended at 2 p.m. from the same time Feb. 20, grid data compiled by Bloomberg show. Power at the Houston hub gained $8.77, or 41 percent, to average $30.05 a megawatt-hour.
At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power plunged $56.21, or 55 percent, to average $46 a megawatt-hour for the hour ended at 3 p.m. New York time from the same hour Feb. 20. Power at the Eastern hub, which includes New Jersey, slid $90.76, or 67 percent, to average $45.72 a megawatt-hour.
Demand on the 13-state PJM network, the nation’s largest grid, dropped 9.6 percent to average 111,293 megawatts at 3 p.m. PJM demand set a winter peak of 143,800 megawatts on Feb. 20.
PJM West on-peak power traded $3.16 below the Eastern hub, compared with a discount of $27.20 on Feb. 20 and a three-month average discount of $10.49 for PJM West.
Natural gas for March delivery fell 7.2 cents, or 2.4 percent, to settle at $2.879 per million British thermal units on the New York Mercantile Exchange. About 27 percent of power in the U.S. is generated using gas.