In today’s AUSenergy News Special Update: Spot wholesale power prices

Spot wholesale power prices increased due to high temperatures

Summary: On June 16, 2014, spot wholesale electricity prices doubled in the Mid-Atlantic and climbed in the Midwest as above-normal temperatures swept through the region. PJM Interconnection projected that electricity production would peak at 143,146 MW on June 17, the most since July 2013. Spot electricity at PJM’s Western hub topped $100 per megawatt-hour for three consecutive hours before easing.
AUS Comment: Customers on variable rates with alternative suppliers or on hourly rates with the utility will feel the most impact from these increases. Although short-term price peaks may not have a huge impact on a monthly electric bill, prolonged high prices could make an impression. With June 18th also forecasted as a peak pricing day, the threat is real as we move into summer.

Spot wholesale electricity falls for third day in a row

Summary: Spot wholesale electricity fell to a one-week low after a surge of heat in the East gave way to milder weather.
AUS Comment: Occurring only 2 days after a nearly 12-month peak in pricing, this is a great example of how volatile the electricity market is and how other factors, such as weather, can send pricing on a roller-coaster ride.

Spot prices in Texas stay low thanks to wind power

Summary: Wind generation kept Texas’ electricity spot price down despite high temperatures throughout the state.
AUS Comment: This is a perfect instance of how alternative generation can reduce our dependence on traditional fuel sources and control pricing.