Bloomberg News

New York, New England, Midwest Spot Power Jumps on Hot Weather

April 16, 2012

Alex Dyer, left, and Seth Magee practice during a lunch break in Bryant Park in New York on March 22, 2012. Photographer: Justin Lane/EPA/Landov

Alex Dyer, left, and Seth Magee practice during a lunch break in Bryant Park in New York on March 22, 2012. Photographer: Justin Lane/EPA/Landov

Wholesale power in the U.S. Northeast surged as warmer-than-normal weather prompted households and businesses to turn on their air conditioners.

New York City spot power traded between $30 and $192.07 a megawatt-hour from 10 a.m. to 12:15 p.m., and were at similar levels across the grid, according to the New York Independent System Operator Inc. Power traded at $153.78 at 12:15 p.m.

New England wholesale electricity jumped to $117.79 to $118.25 a megawatt-hour for the 25 minutes ended 10:40 a.m., the highest prices since March 7, from the $30-range an hour earlier, according to ISO New England Inc., which operates the grid extending from Connecticut to Maine. Prices were at $40.67 at 12:10 p.m.

Electricity consumption is running above forecasts across on both grids. The high in New York today will be 86 degrees Fahrenheit (30 Celsius), 24 above normal, according to AccuWeather Inc. in State College, Pennsylvania. Boston may see a high of 87 degrees, 31 above normal.

Demand for power in the five boroughs of New York was 7,261 megawatts at noon, 3.9 percent above the forecast for that time, according to the New York ISO. The grid operator said yesterday that demand would reach a peak of 7,015 megawatts at 2 p.m.

Power use across New England was 15,876 megawatts as of 11:15 a.m., and was expected to reach a peak of 16,670 megawatts at 5:30 p.m., according to the region’s grid operator.

In the central U.S., transmission constraints and a drop in wind generation boosted prices in Indiana and Michigan.

Indiana and Michigan

Wholesale electricity at the Indiana hub jumped to $113.27 a megawatt-hour at 10:30 a.m. local time from $36.74 10 minutes earlier, data from the Midwest Independent Transmission System Operator Inc. show. Michigan hub prices rose to $64.14 from $38.09 during the same period.

Power generated from wind turbines in the Midwest fell to 6,810 megawatts at 11 a.m. local time, 15 percent below the forecast for that time. Electricity use across the MISO grid was 57,515 megawatts at 10:40 a.m., below the 58,834 megawatts of supplies secured for that hour in the day-ahead market yesterday.

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


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