US Heat Wave Has Power Use at Very High Levels
The heat wave roasting the US East Coast may have slow US stock trading and foiling July 4 road trips. But it’s the best friend of power market Bulls.
Electricity demand across the eastern power market run by PJM Interconnection LLC reached 144,557 megawatts in the hour ended at 2:00p EDT the highest since 12 August 2016, as people ran their air conditioners and fans to keep cool.
In New York, which is suffering through a 4th day running of temperatures above 90 degrees Fahrenheit (32 degrees Celsius), power use surged to the highest marks since Y 2013.
The spike in demand sent wholesale electricity prices at PJM’s Western hub surging 19% to $103.51 a megawatt-hour in the hour ended 1:00p local time.
That is the highest average for that time of day since 12 March, according to Genscape Inc. data. Average prices in New York City hit the highest since April for the hour ended 11:00a
New York has cracked 90 degrees Fahrenheit or above every day since Saturday and could get there again as Summer’s 1st heat wave keeps a grip on the Northeast.
Temperatures declined a few degrees in New York and New England Wednesday, but that probably will not bring much relief as humidity will remain high, said a forecaster at the US Weather Prediction Center in College Park, Maryland.
Washington, DC will notice even less of a change.
While heat advisories and excessive-heat warnings stretch across the US from Kansas to the Atlantic, they are densely packed across northeastern states and will be back again Wednesday, he said.
“A ridge is anchored over the US, and its deflecting any cool air well north of the international border,” he said.
Happy 4th of July, and try to stay cool.