Below average temperatures keep down wholesale spot power prices

August 26, 2002 — Wholesale electricity spot prices continued to fall yesterday in most of the Western U.S. as below average temperatures have remained in the region, lowering the demand for electricity.

In California, prices fell for the third consecutive trading day. According to Weather Derivatives Inc, as reported in the Bloomberg Power Lines report, today’s statewide cooling demand will be 37% below normal for this time of year, and 12% below normal for the coming week.

Prices at the NP-15 trading center in California have fallen 18 % over the past three trading days to $23.92 per megawatthour.

Electricity prices in the Mid-continent region have been increasing over the past two trading days as warmer weather has led to an increase in electricity demand. Prices at the Cinergy hub have increased 57% over the past two trading days to $34.71 per megawatthour on August 21.

Prices in the Northeast increased yesterday, after several days of relatively stable prices, as warmer weather led to an increase in electricity demand. New England prices have increased 34% from $42.13 per megawatthour on August 20 to $56.46 per megawatthour on August 21.

Similarly, prices at PJM West also increased 34% yesterday to $46.25 per megawatthour. The New York Zone J, New York City, saw prices rise for the second consecutive trading day to $73.25 per megawatthour, but this was only an increase of 8 % over Monday’s price.

Over the past seven days, the average price at all trading centers has ranged between $55.28 per megawatthour and $32.42 per megawatthour.

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