Electricity Prices in Mid-Atlantic States Jump as Demand Rises

Dec 24, 2013 3:04 pm ET

Dec. 24 (Bloomberg) -- Spot wholesale electricity prices in the mid-Atlantic states rose as demand on the largest U.S. power grid exceeded expectations.

Power use on the PJM Interconnection LLC network averaged 94,746 megawatts at 2:25 p.m. New York time, a 1.4 percent increase from the day-ahead prediction of 93,432 megawatts, according to the grid’s website.

The high temperature today in Washington may reach 43 degrees Fahrenheit (6 Celsius), 21 below yesterday, according to AccuWeather Inc. in State College, Pennsylvania.

Spot prices at PJM’s benchmark Western hub, which includes Washington, jumped 25 percent to average $36.57 a megawatt-hour for the hour ended at 2 p.m. from the same time yesterday, grid data compiled by Bloomberg show. Prices at the Eastern hub, which includes New Jersey, advanced 7 percent to average $31.75 a megawatt-hour.

PJM West on-peak power traded $6.31 above the Eastern hub, compared with a 72-cent premium yesterday and a three-month average discount of $3.04 for PJM West.

Spot prices in New York City fell 0.7 percent to average $55.36 a megawatt-hour at 2 p.m., while Boston prices rose 6.1 percent to average $50.48 a megawatt-hour, the grid data show.

New York on-peak power traded $27.28 below Boston, compared with a $5.42 premium yesterday and a three-month average discount of $12.52 for New York.

--Editors: Charlotte Porter, David Marino