Spot wholesale power on three Eastern U.S. grids gained as summer heat and humidity drove demand to the highest level in more than 11 months.
The Northeast and mid-Atlantic states will see above-normal temperatures through the end of the week, according to WSI Corp. in Andover, Massachusetts. The high in Boston today will be 94 degrees Fahrenheit (34 Celsius), 15 degrees higher than usual, and Washington may be 4 degrees above normal at 91, according to AccuWeather Inc. in State College, Pennsylvania.
“It’s hot out there,” said Stephen Schork, president of Schork Group Inc., a consulting group in Villanova, Pennsylvania. “We are looking at the low mid-90s all week and decent humidity, so it makes sense that we are going to see load increase. That should be supportive to prices.”
Spot electricity for New York City climbed $13.92, or 34 percent, to $54.76 a megawatt-hour from the same time on June 21, grid data compiled by Bloomberg showed. The day-ahead price for the hour was $56.70. The on-peak average was up 19 percent at $51.61 from the June 21 full-day average.
Boston jumped $10.80, or 23 percent, to average $58.42 a megawatt-hour during the same hour, higher than the day-ahead outlook of $54.74. The on-peak average is up 20 percent at $57.51.
Power for PJM Interconnection LLC’s Eastern hub, which includes prices from New Jersey to Virginia, rose $6.12, or 12 percent, to $57.76 a megawatt-hour, above the day-ahead outlook of $53.04. The on-peak average is up 3.2 percent at $42.26.
PJM expects demand on its 13-state grid, the largest in the U.S., to peak at 142,961 megawatts during the hour ended at 5 p.m., the most since Aug. 3. The Valley Forge, Pennsylvania-based grid manager issued a Hot Weather Alert for tomorrow on the possibility that extreme heat and humidity may cause capacity constraints.
The New York Independent System Operator Inc. said peak demand in Manhattan and the neighboring four boroughs will reach 10,279 megawatts today, also the highest since Aug. 3.
Electricity consumption on the six-state grid from Maine to Connecticut will peak at 25,000 megawatts, the most since July 18, according to ISO New England Inc. data compiled by Bloomberg.
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