Eastern wholesale electricity rose as hotter weather prompted households and businesses to crank up their air conditioners.
Power usage in New York City, and on the grid stretching from New Jersey to North Carolina and Illinois, is heading toward the highest levels in more than a week. WSI Corp. predicted both regions will see above-normal temperatures today.
“You’ve got more demand in the market,” said Stephen Schork, president of Schork Group Inc., a consulting group in Villanova, Pennsylvania. “I finally turned on the air conditioner in my house. In addition, next week temperatures below that 40th parallel, which is below the city of Philadelphia, are going to remain hot.”
Spot power at PJM Interconnection LLC’s benchmark Western Hub, which includes prices from Washington to Erie, Pennsylvania, gained $14.15, or 39 percent, to $50.27 a megawatt-hour from 2 p.m. to 3 p.m. from the same time yesterday, grid data compiled by Bloomberg show. The day-ahead outlook for that hour was $49.05.
The on-peak average for the hub was up 33 percent at $45.32 from yesterday’s full-day average. On-peak hours are from 7 a.m. until 11 p.m. on Monday through Friday.
New York City electricity rose $13.40, or 43 percent, to $44.55 a megawatt-hour for the hour ended at 3 p.m. The day-ahead price was set yesterday at $54.55 for the period. The spot on-peak average increased 22 percent to $40.54.
The high temperature in New York today will reach 80 degrees Fahrenheit (27 Celsius), 2 above normal, according to AccuWeather in State College, Pennsylvania. Washington’s high will also be 2 degrees above normal at 85. Temperatures were below normal across the East Coast markets yesterday.
PJM expects demand on its 13-state grid to climb to 116,980 megawatts from 5 p.m. to 6 p.m., the highest hourly average for any day since May 31, data from the grid operator show. Power usage in New York will peak at 8,431 megawatt for the hour ended 4 p.m., the most since June 3.
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