Spot wholesale electricity gained on the East Coast, rebounding from the lowest prices in more than a year, as demand rose for the first time in three days.
Power advanced as consumption tracked day-ahead forecasts. The high temperature in New York City will be 81 degrees Fahrenheit (27 Celsius), 3 lower than the usual reading, after dropping to 68 degrees yesterday, 16 below normal, according to AccuWeather Inc. in State College, Pennsylvania.
“Their forecast for usage going into today is coming in a lot more in line than with the forecast for yesterday,” said Kate Trischitta, director of trading at Consolidated Edison Inc.’s wholesale energy trading unit in Valhalla, New York. “Maybe it was the effect that we had all that heat and suddenly a cool day and everyone opened their windows.”
Spot electricity for New York City rose $14.45, or 63 percent, to $37.50 a megawatt-hour during the hour ended at noon from the same time yesterday, grid data compiled by Bloomberg showed. The on-peak average rose 34 percent to $32.21 from yesterday’s full-day average of $24.21, which was the lowest price since June 12, 2012.
Boston more than doubled to $31.99 a megawatt-hour for the hour ended at noon, boosting the spot on-peak average 67 percent from yesterday, when power dropped to 20.40, the lowest price since May 8, 2012.
PJM’s benchmark Western hub, which includes deliveries to Washington, gained $5.49, or 18 percent, to $36.24 megawatt-hour at noon. The on-peak average was down 1.1 percent at $31.76.
Demand on the PJM grid was 102,169 megawatts at 11:30 a.m., 0.2 percent higher than the day-ahead projection of 102,402 megawatts for the time, according to its website. Actual demand was 3.1 percent below the forecast at the same time yesterday.
PJM expects demand today to peak at 113,518 megawatts, up from yesterday’s high of 107,374 megawatts.
ISO New England Inc. said demand will climb to 17,430 megawatts today, up from yesterday’s peak of 16,439 megawatts.
Power consumption in Manhattan and its neighboring boroughs will rise to 8,571 megawatts from 7,207 yesterday, according to the New York Independent System Operator Inc.
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