Power prices on the rise along with the heat

Power prices in the U.S. Northeast and
mid-Atlantic states may rise as warmer weather tomorrow increases
use of air conditioners.

Northeast cooling demand will be 17 percent above normal
tomorrow compared with 3 percent below normal today, said
forecaster Weather Derivatives of Belton, Missouri.

“With the heat, prices should be at or above current
levels,” said William Golemboski, director of electric
forecasting and scheduling at Spring Valley, New York-based
Econnergy Energy Co.

Power for delivery today at PJM Interconnection, the grid
network for most of the mid-Atlantic region, rose $15.97, or 36
percent, to $60.15 a megawatt hour in trading Thursday, according
to Bloomberg data.

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August PJM futures rose for the first time in 10 sessions, by
95 cents, or 1.6 percent, to $60.85 a megawatt-hour on the New
York Mercantile Exchange.

The average price of Northeast natural gas, which fuels as much as a third of the region’s generating capacity, fell for the seventh time in eight sessions, by 7 cents, or 1.3 percent, to
$5.29 per million British thermal units.

Bloomberg News

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