Spot Power Prices Spike From LA To NY, September Is Hot
Spot power prices spiked from Los Angeles to New York City Tuesday as customers blasted air conditioners to keep cool in what is seen to be the hottest September since Y 2005.
High temperatures and humidity “will be the rule for the next couple of days” across the Northeast and mid-Atlantic, WSI Corp., a weather services company in Andover, Mass, said in a note to clients.
Tuesday’s high in New York’s Central Park reached 97F, while in Boston readings peaked at 96F, setting daily records for both cities, the National Weather Service said. As of 3 p.m., Washington was 92F.
An excessive heat warning was issued for the Los Angeles area as part of the region braced for hot triple-digit temperatures.
The abnormally hot weather sent power demand rising above forecasts across US electricity grids. Power system operator PJM Interconnection LLC, which operates a system spanning 13 states in the eastern US, warned that hot weather over the next 2 days may result in above-forecast power generation outages. New England’s grid manager issued a similar alert.
Spot wholesale power at the benchmark Boston hub surged $289.78 to average $340.84 a megawatt-hour in the hour ended 2 p.m. local time Tuesday from the same time on 4 September, grid data show. Power in the New York market climbed $72.20, or 148 percent, to $120.98 a megawatt-hour.
Electricity demand on PJM’s network jumped 3.3% at 2 p.m. from the same time on 4 September data from the network manager show. Consumption on the ISO New England Inc. system rose 31%.
Searing heat in parts of Southern California forced the Los Angeles Department of Water and Power (DWP) to issue a conservation notice to customers.
Power at Southern California’s SP15 hub that serves Los Angeles rose 17-fold to average $416.35 a megawatt-hour in the hour ended 3 p.m. local time Tuesday, according to data.
The high in New York’s Central Park broke an old mark for the day set in Y 1919 and turned Tuesday into the hottest day of the year there, said Carlie Buccola, a National Weather Service meteorologist in Upton, New York.
Stay tuned…
It’s Hot, Stay cool
HeffX-LTN
Paul Ebeling
The post Spot Power Prices Spike From LA To NY, September Is Hot appeared first on Live Trading News.