Supply Surplus Sends Boston Power Prices to Lowest in Two Weeksby
Boston wholesale power slumped to a two-week low as demand dropped with milder weather, helping to expand a supply surplus.
ISO New England Inc. said consumption on the six-state transmission system will peak at 15,800 megawatts, 12 percent lower than Wednesday’s high, according to its morning report. The amount of excess power supplies, including generating units in the region and providers on nearby grids, jumped 42-fold from the previous day.
The high temperature in Boston will be 59 degrees Fahrenheit (15 Celsius), 8 below normal, after climbing on Wednesday to 78, according to AccuWeather Inc.’s website.
Spot prices at the hub serving Boston and Northeast Massachusetts tumbled 91 percent to $15.99 a megawatt-hour in the hour ended at 11 a.m. from the same time on Wednesday, according to grid data compiled by Bloomberg. The average price for spot on-peak power is down 76 percent to $17.20, heading for the lowest daily average since Sept. 14.
Demand in New England matched forecasts at 11 a.m. after coming in below for much of the morning, according to the operator’s website.
The grid’s supply surplus jumped to 1,671 megawatts from just 40 megawatts on Wednesday with the forecast for a decline in power consumption and increased imports from the New York state grid, ISO New England said in its daily reports. The surplus expanded even as the number of generation outages and reductions climbed by 1,055, or 15 percent, to 8,245 megawatts from the previous day.