Mid-Atlantic Wholesale Power Gains as Warm Weather Spurs DemandJonathan N. Crawford
Wholesale power in the mid-Atlantic market gained as warmer weather boosted electricity consumption for air conditioner use.
The high temperature in Washington on Wednesday was 74 degrees Fahrenheit (23 Celsius), 5 above normal, according to AccuWeather Inc. of State College, Pennsylvania. Analysts typically use 65 degrees as a benchmark for weather that requires no heating or cooling.
Demand in the 13-state market run by PJM Interconnection LLC advanced 2.9 percent at 2 p.m. from a day earlier, data from the grid manager showed.
Spot wholesale power for PJM’s Western hub, which includes deliveries to Washington, gained $9.53, or 32 percent, to average $39.16 a megawatt-hour during the hour ended at 2 p.m. from the same time a day earlier, grid data compiled by Bloomberg showed.
Power in the Eastern hub, which includes New Jersey, eastern Pennsylvania, Maryland and Virginia, gained $5.91, or 25 percent, to average $29.29 a megawatt-hour.
Average on-peak power in the West traded $7.86 more than the east, widening from $7.50 Tuesday, and compared with a three-month average discount of $4.91 for the West.
Spot natural gas at the Tetco M3 hub for delivery in the mid-Atlantic rose 13.27 cents to $1.9007 per million British thermal units in trading Wednesday on the Intercontinental Exchange, the highest since April 8. Gas accounted for 17 percent of PJM generation last year.