Wholesale Electricity Surges in New York as Temperatures Soar
By Naureen S. Malik - May 29, 2012 2:09 PM ET
Wholesale electricity jumped in New York as hot, humid weather from Massachusetts to Maryland prompted households and businesses to crank up their air conditioners.
Spot power in New York City rose to an average of $706.33 a megawatt-hour for the hour ended at 12 p.m., after soaring as high as $1,647.56 at 10:55 a.m., according to the New York Independent System Operator Inc., which manages the state grid. Electricity traded yesterday for delivery in the 10 a.m.-to-noon period today was priced in the $50-range.
The high in New York today may be 88 degrees Fahrenheit (31 Celsius), 14 above normal, with humidity rising to as high as 87 percent, according to AccuWeather Inc. in State College, Pennsylvania. Baltimore’s high will be 12 above normal at 91 degrees.
“Today’s demand is expected to be up with the heat and humidity, but power supplies are more than adequate to meet that demand,” Michael Clendenin, a spokesman for Consolidated Edison Inc. in New York, said in an e-mail. A cold front expected to move in later today and tomorrow will “bring temperatures back to normal by the end of the week,” he said.
Most power for a given day is purchased the previous day in what is known as the day-ahead market. Spot prices can jump when demand exceeds the amount secured in trading a day earlier.
more:
http://www.bloomberg.com/news/2012-05-29/wholesale-electricity-surges-in-new-york-as-temperatures-soar.html
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