Boston Electricity Prices Fall as Demand Drops Below Forecast

Feb 07, 2014 4:53 pm ET

Feb. 7 (Bloomberg) -- Spot wholesale electricity in Boston dropped as power consumption fell below expectations. Prices also declined in the mid-Atlantic region and Texas.

Power use on the ISO New England Inc. grid averaged 16,421 megawatts at 3:20 p.m., below the day-ahead forecast of 16,560 megawatts, according to the grid’s website.

The high temperature today in Boston reached 30 degrees Fahrenheit (minus 1 Celsius), 2 above yesterday’s high, according to AccuWeather Inc. in State College, Pennsylvania.

Spot power in Boston fell $144.88, or 75 percent, to average $48.90 a megawatt-hour for the hour ended at 3 p.m. from the same time yesterday, grid data compiled by Bloomberg show. New York City prices dropped $34.42, or 18 percent, to average $161.85.

New York on-peak power traded $32.83 above Boston, compared with a discount of $72.58 yesterday and a three-month average discount of $16.66 for New York.

At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power slid $23.98, or 41 percent, to average $33.91 a megawatt-hour at 3 p.m., while prices at the Eastern hub, which includes New Jersey, declined $22.48, or 36 percent, to average $40.03.

PJM West on-peak power traded $6.85 below the Eastern hub, compared with a discount of $7.90 yesterday and a three-month average discount of $11.17 for PJM West.

In Texas, spot power at the North hub, which includes Dallas, slid $55.18, or 43 percent, to average $74.42 a megawatt-hour for the hour ended at 2 p.m. local time from the same time yesterday. Houston hub prices fell $43.92, or 37 percent, to average $74.18.

The Electric Reliability Council of Texas Inc., which manages most of the state’s grid, canceled its request from yesterday for consumers to conserve power because of high demand and low temperatures.

--Editors: Bill Banker, Richard Stubbe