Summer heat pushing up power prices, NYC hits $70/MWh

Down-on-their luck power generators are starting to see increased prices for their electricity in connection with the summer heat wave across much of the nation.

The Energy Information Administration (EIA) reported early July 25 that New York City had reported a spot power price of $70.06/MWh, making it the highest-priced organized market in the country.

The normally-temperate Northwest recorded the second-highest spot power price in the nation at $69.00/MWh.

In fact, the EIA data only showed two of the 10 organized markets (Houston and Louisiana) reported spot power prices below $40/MWh.

The EIA price figures reflect select spot prices for delivery on July 25. The picture was much different roughly one month ago. On June 24, EIA reported that Southern California had the highest reported spot power price at $34.23/MWh and the Northwest had the lowest reported spot power price at $14.85/MWh.

The hot weather, and the increased air conditioning use that goes with it, could stick around a while longer. The National Weather Service continues to issue “heat advisories” and warn of “dangerous” levels of heat in much of the nation.

Also many electric utilities and regional grid operators continue to urge conservation by customers in order to reduce the chance of rolling blackouts.

 Some of the hot spots for July 25 are forecast to include New York City at 95 degrees; Dallas at 97; Salt Lake City at 99; and Las Vegas at 110 degrees.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.