Midwestern Power Gains as Lower Temperatures Boost Demand

Apr 22, 2014 5:39 pm ET

April 22 (Bloomberg) -- Spot wholesale electricity rose on the 13-state mid-Atlantic grid as demand increased and temperatures fell.

Power consumption on PJM Interconnection LLC’s network, which runs from Washington to Chicago, was 85,116 megawatts at 4 p.m. East Coast time, up from 84,983 megawatts at the same time yesterday, grid data compiled by Bloomberg show.

The high temperature in Chicago today was projected to be 49 degrees Fahrenheit (9 Celsius), down from 78 degrees yesterday, according to AccuWeather Inc. in State College, Pennsylvania.

Spot prices at PJM’s benchmark Western hub gained $13.63, or 32 percent, to $55.95 a megawatt-hour in the hour ended 4 p.m. from the same time yesterday, grid data compiled by Bloomberg show. Power at the Eastern hub, which includes New Jersey, rose $18.13, or 44 percent, to $59.15.

PJM West on-peak power traded $1.80 below the Eastern hub, compared with 5 cents lower yesterday and a three-month average discount of $13.99 for the Western hub.

Spot power also increased in Texas as wind power produced 729 megawatts, less than the day-ahead outlook, according to the Electric Reliability Council of Texas Inc.’s website.

Ercot’s North hub, which serves Dallas and Fort Worth, rose $5.49, or 10 percent, to $59.58 in the hour ended 3 p.m. local time. Houston hub prices advanced $8.08, or 15 percent, to $62.30, data compiled by Bloomberg show.

Northern California power tumbled $40.96, or 52 percent, to $38.18 a megawatt hour, while electricity in Southern California slipped $3.96, or 9.6 percent, to $37.05.