Northeast Electricity Tops $500 as Heat Surge Boosts Demand

Monday, 15 July 2013 03:04 PM

July 15 (Bloomberg) -- Spot wholesale electricity on three East Coast grids surged as unusually hot weather increased air conditioner use.

New York City and Boston prices rose above $500 a megawatt- hour while costs on the 13-state grid operated by PJM Interconnection LLC jumped to more than $300 as demand exceeded forecasts. Consolidated Edison Inc. expects power use in its New York City and Westchester County area to reach a record 13,200 megawatts today, according to a statement from the utility.

The temperature in Manhattan will rise to 94 degrees Fahrenheit (34 Celsius), 10 above the average high, while Washington may be 5 higher at 94, according to AccuWeather Inc. The Northeast and mid-Atlantic states will see highs in at 90s for most of this week, the State College, Pennsylvania-based forecaster said.

“We got the big spike in power and I have to imagine that’s going to continue, based on this heat,” said Stephen Schork, president of Schork Group Inc., a consulting group in Villanova, Pennsylvania. “This is where the peaker units make their bread and butter this week.”

Spot power for New York City jumped to $565.62 a megawatt- hour at 1:04 p.m. after averaging $136.26 for the hour ended at 1 p.m., grid data compiled by Bloomberg showed. The on-peak average has more than tripled to $141.40 a megawatt-hour from the July 12 full-day average of $39.80. On-peak hours run from 7 a.m. until 11 p.m. Monday through Friday

Boston Prices

Boston surged to $561.32 a megawatt-hour after averaging $171.39 a megawatt hour during the hour ended at 1 p.m. The on- peak average more than doubled to $77.01. PJM’s Eastern hub, which includes cities such as Philadelphia, Baltimore and Richmond, Virginia, rose to $337.70 after averaging $149.88 at 1 p.m. The Eastern hub’s on-peak average more than tripled to $113.55.

The premium for New York City electricity widened versus New England and PJM as imports from these neighboring grids fell below day-ahead forecasts, said Matt Oatway, a Boston-based analyst with Genscape Inc., which tracks real-time power data.

The premium for New York City on-peak power widened versus Boston to $64.38 a megawatt-hour from $5.32 on July 12. New York’s premium versus Public Service Enterprise Group Inc.’s northern New Jersey territory on the PJM grid widened to $27.30 from $2.60.

Oil Burn

The utilities serving New York City and Long Island declared today a minimum oil burn day, requiring oil-fired plants to ramp up to assure sufficient supplies, according to the New York Independent System Operator Inc.’s website.

Oil- and coal-fired generators also increased production in New England, accounting for 12 percent of the region’s power supply as of 12:58 p.m., according to ISO New England Inc.’s website. That’s up from about 2 percent on July 12.

Power consumption from Maine to Connecticut may peak at 26,200 megawatts in the hour ending at 5 p.m., heading for the highest hourly average since July 22, 2011, according to ISO New England data. PJM expects demand on its grid, the largest in the U.S., to peak at 153,120 megawatts today, the most since July 18, 2012.

--Editors: Bill Banker, Justin Carrigan

To contact the reporter on this story: Naureen S. Malik in New York at nmalik28@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

© Copyright 2018 Bloomberg News. All rights reserved.

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Northeast Electricity Tops $500 as Heat Surge Boosts Demand
Monday, 15 July 2013 03:04 PM
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