Bloomberg News

PJM Western Hub Power Gains as Colder Weather Boosts Demand

April 04, 2013

Wholesale electricity prices on the eastern U.S. grid operated by PJM Interconnection LLC climbed to the highest level in more than two weeks as a cold snap lifted demand above forecasts.

On-peak prices, which span 7 a.m. through 11 p.m., almost doubled from yesterday’s full-day average with power consumption coming in about 3 percent to 5 percent above yesterday’s outlook. The Northeast and mid-Atlantic states will see below- normal temperatures today, according to WSI Corp. in Andover, Massachusetts.

Electricity at PJM’s benchmark Western Hub, which includes prices from Pennsylvania to Washington, rose $36.60, or 91 percent, to $76.73 a megawatt-hour at 12 p.m. from yesterday’s on-peak average, the highest since March 18, according to the grid operator. Earlier the average surged to a 10-week high after parts of the region saw near-freezing weather.

The high today in Washington may be 53 degrees Fahrenheit (12 Celsius), 10 below normal, and while Newark, New Jersey, may see a high of 54 degrees, 4 lower than the usual reading, according to AccuWeather Inc. in State College, Pennsylvania.

Power usage across the 13-state grid, which runs from New Jersey into North Carolina and Illinois, surged to 102,183 megawatts at 7:20 a.m. today, exceeding the grid operator’s peak-demand forecast of 98,913 megawatts at 7:30 a.m.

Spot electricity in the Midwest and New England rose while declining in New York City.

Midwest Benchmark

The Indiana hub, a benchmark for the Midwest, climbed $13.98, 43 percent, to $46.81 per megawatt-hour at 10 a.m. local time from yesterday’s on-peak average, data from the Midwest Independent Transmission System Operator Inc. showed.

On-peak prices on the six-state grid from Connecticut to Maine rose 23.5 cents, or 0.5 percent, to $51.77 a megawatt-hour at noon, gaining for the third time in four days, ISO New England Inc. data showed.

New York City prices slid for the first time in six days, dropping $15.42, or 27 percent, to $42.28 a megawatt-hour at 12 p.m. local time from yesterday’s on-peak average, according to the New York Independent System Operator Inc.

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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