Northeast Wholesale Power Slumps as Warm Weather Trims DemandJonathan N. Crawford
Wholesale power in the Northeast U.S. headed lower Wednesday as warmer weather cut demand for electricity and trimmed fuel prices.
Power consumption in New York fell 1.9 percent at 3 p.m., according to the New York Independent System Operator Inc., as temperatures in Manhattan were poised to reach a high of 59 degrees Fahrenheit (15 Celsius), 11 above average, AccuWeather Inc. said on its website.
With Boston forecast to reach a high of 58 degrees, demand across the New England market slipped 4.3 percent at 3 p.m. from the same time a day earlier.
Spot wholesale power for Manhattan and its four neighboring boroughs fell $6.25, or 26 percent, to average $18.06 a megawatt-hour during the hour ended at 3 p.m. from a day earlier, grid data compiled by Bloomberg showed.
In ISO New England Inc.’s benchmark hub for Boston and Northeast Massachusetts, power fell $14.60, or by 54 percent, to average $12.69 after dipping to $1.40 earlier in the day.
Average on-peak power in New York traded $7.46 more than Boston, widening from a $2.83 premium Tuesday and compared with a three-month average discount for New York of $7.09.
Spot natural gas at Transco Zone 6 for delivery Wednesday to New York City fell 7.9 cents, or 3 percent, to $2.57 per million British thermal units in trading Tuesday on the Intercontinental Exchange, the lowest price since Dec. 24. Gas at the Algonquin City Gates, which includes Boston deliveries, fell 23 percent to $3.10, also the lowest since December. Prices at both locations rose Wednesday.
U.S. electricity output for the week ended March 6 fell 4,630 gigawatt-hours, or 5.4 percent, from the prior week, data from an Edison Electric Institute report today showed.