California Spot Power Jumps as Demand Tops Forecasts

Jun 09, 2014 5:13 pm ET

June 9 (Bloomberg) -- Spot wholesale electricity in California climbed as demand exceeded forecasts.

The high temperature in Los Angeles was projected to be 78 degrees Fahrenheit (26 Celsius), 1 above normal, with San Francisco forecast to reach a maximum of 68, 2 above normal, according to AccuWeather Inc. in State College, Pennsylvania.

Power consumption across the California Independent System Operator Inc. market averaged 35,497 megawatts in the hour ended at 1 p.m. local time, 4,373 megawatts, or 14 percent, higher than the same hour June 6, according to the grid manager. Power consumption for the hour exceeded day-ahead projections by 4.2 percent, data on the website showed. The California market is forecast to reach a peak today of 40,179 megawatts.

Spot power at Northern California’s NP15 hub, which includes deliveries to San Francisco, gained $17.86, or 46 percent, to average $56.41 a megawatt-hour during the hour ended at 1 p.m. local time from the same time June 6, grid data compiled by Bloomberg showed.

In the SP15 hub, serving Los Angeles and San Diego, power climbed $21.34, or 67 percent, to average $53.13.

Northern California on-peak power traded at a premium of $12.91 to the southern hub, compared with a discount of $3.07 on June 6 and a three-month average discount of $3.29.