Dive Brief:
- Above-average temperatures caused wholesale electricity prices to soar in the Mid-Atlantic and Midwest regions yesterday, with the PJM Interconnection reporting a projected peak load of 143,146 MW -- the highest since last July -- on June 17.
- In PJM's Eastern hub, wholesale power prices rose from $44.27 per megawatt-hour to $84.82 per megawatt-hour over 24 hours.
- In PJM's Western hub, wholesale prices rose from $53.22 per megawatt-hour to $79.86 per megawatt-hour over the same period.
Dive Insight:
Further south, however, wholesale power prices dropped. ERCOT reported lower-than-usual prices as wind generation averaged 7,447 MW for one hour across the system operator's footprint yesterday, beating the day-ahead forecast by 77%. Wholesale power prices in ERCOT fell to $46.09 per megawatt-hour.
These scenarios highlight the impact of the weather on electric reliability. Demand response, which helped many U.S. utilities mitigate the impact of this winter's Polar Vortex, is set to play a big role as supply constraints take hold this summer, which is shaping up to be abnormally hot. Energy-intensive air conditioners, in particular, are a target for many utilities' demand response initiatives.
