Spot Power Doubles in Mid-Atlantic as Heat Sweeps Region

Jun 17, 2014 4:54 pm ET

June 17 (Bloomberg) -- Spot wholesale electricity doubled in the Mid-Atlantic and climbed in the Midwest as above-normal temperatures swept through the region.

The high temperature in Washington was projected to be 96 degrees Fahrenheit (36 Celsius), 11 above normal and the highest for the day since 1991, according to AccuWeather Inc. Chicago was projected to hit a maximum of 88 degrees, 7 above that city’s normal high.

PJM Interconnection LLC projected that electricity production in the 13-state grid would peak at 143,146 megawatts today, the most since last July.

Power prices in PJM’s Eastern hub, which includes New Jersey, eastern Pennsylvania, Maryland and Virginia, power jumped $44.27 to average $84.82 a megawatt-hour for the hour ending at 3 p.m. from the same time yesterday, according grid data compiled by Bloomberg.

In PJM’s Western hub, which extends from Washington to Erie, Pennsylvania, spot power climbed $26.64, or 50 percent, to average $79.86.

On-peak Western hub prices traded $3.62 below the Eastern hub, compared to a premium of $22.01 yesterday, and a three- month average discount for the Western hub of $3.28.

Power prices fell in Texas as the amount of wind power on the grid topped forecasts.

Wind turbines produced an average of 7,447 megawatts for the hour ending at 2 p.m. local time, surpassing the day-ahead forecast by 77 percent, or 3,237 megawatts, according to the Electric Reliability Council of Texas Inc., which manages most of the state’s power. Wind provided 9.9 percent of the electricity used in the Ercot region in 2013.

Spot power across the Ercot grid fell 48 cents, or 1 percent, to average $46.09 a megawatt-hour during the hour ended at 2 p.m. local time from the same time yesterday.