Power in Washington Gains Amid Higher-Than-Forecast Demand

Aug 28, 2014 5:24 pm ET

Aug. 28 (Bloomberg) -- Spot wholesale electricity in PJM Interconnection LLC’s benchmark Western hub climbed as consumption on the grid exceeded forecasts.

Across PJM’s 13-state network, from the mid-Atlantic region to the Midwest, electricity use averaged 119,382 megawatts for the hour-ended at 4 p.m., data compiled by Bloomberg showed. That topped the day-ahead projections of 115,712 megawatts for the hour ended at 4:30 p.m.

The temperature in Washington was 83 degrees Fahrenheit (28 Celsius) at 4:40 p.m. after climbing to 86 earlier in the day, 1 above the normal high, according to AccuWeather Inc. of State College, Pennsylvania.

In PJM’s benchmark Western hub, which includes prices from Washington to Erie, Pennsylvania, power gained $15.53, or 19 percent, to average $98.03 a megawatt-hour during the hour ended at 4 p.m. New York time from the same time yesterday, grid data compiled by Bloomberg showed.

In PJM’s Eastern hub, which includes New Jersey, eastern Pennsylvania, Maryland and Virginia, power fell $60.51, or 61 percent, to average $39.08 a megawatt-hour.

On-peak prices in PJM’s Western hub traded at a $4.86 premium to the Eastern hub, flipping from a discount of $7.29 to the Eastern hub yesterday, and compared to a three-month average discount to the Eastern hub of $7.07.

PPL Corp. reduced unit 1 of its Susquehanna plant, located about 50 miles (80 km) northwest of Allentown, Pennsylvania, to 30 percent after one of the water-circulating pumps shut yesterday, according to Joseph Scopelliti, a company spokesman. The unit has a nameplate capacity 1,298 megawatts, according to the Energy Information Administration.

New York

In New York City, power fell $42.98, or 46 percent, to average $51.27 a megawatt-hour, according to data from the the New York Independent System Operator Inc., which manages the grid.

“While it’s probably the warmest weather we’ve had all summer, it’s still not 98 and humid for three days or anything like that,” said Kate Trischitta, the director of trading at Consolidated Edison Inc.’s wholesale energy trading unit in Valhalla, New York. “You are talking about a couple of days that might hit 90s but it’s not going to be enough to disrupt the system in any way.”