Eastern U.S. Power Declines as Milder Weather Reduces Demand

May 23, 2014 2:49 pm ET

May 23 (Bloomberg) -- Spot wholesale electricity in Boston, New York and Washington fell as milder weather trimmed demand.

Power consumption in New York averaged 6,603 megawatts for the hour ending at 2 p.m., down 0.1 percent from a day earlier, according to the New York Independent System Operator Inc.’s website.

The high temperature in New York was projected to be 71 degrees Fahrenheit (22 Celsius), 2 below normal, according to AccuWeather Inc. in State College, Pennsylvania. Analysts typically use 65 degrees as a benchmark for weather that requires no heating or cooling.

Spot power for New York City slid $26.21, or 40 percent, to average $39.84 a megawatt-hour in the hour ended at 2 p.m. from the same time yesterday, grid data compiled by Bloomberg showed. The hub for Boston and Northeast Massachusetts, which is projected to have lower-than-normal temperatures, fell $4.24, or 11 percent, to $36.16, data from ISO New England Inc. showed.

New York on-peak power traded 31 cents below the Boston market, compared with a discount of $3.15 yesterday and a three- month average discount of $5.64 for New York.

At PJM Interconnection LLC’s benchmark Western hub, which includes Washington, spot power fell $12.38, or 23 percent, to average $40.95. Average on-peak power prices for the market are on pace to reach the lowest level in five weeks.