GO
Loading...

East Coast heat wave blasts power prices through the roof

Jared Anderson
Thursday, 18 Jul 2013 | 2:50 PM ET
New York's Times Square on Tuesday.
Getty Images
New York's Times Square on Tuesday.

Intense heat up and down the East Coast has air conditioners cranking and power generators pushing it to the limit. With electricity demand in places like New York flirting with all-time highs, power prices are reaching staggering levels.

"System demand in New York is expected to top out today at 99% of its all-time peak," according the EIA, which also reports power prices on New York's Long Island roughly 1,000 percent higher than normal, in some cases.

More from Breaking Energy:
Calls for US oil exports intensify
US ranks #5 on petroleum risk list
Climate change risk is National Security issue

"Day-ahead prices for certain peak hours reached above $150/MWh [megawatt hour] in New England, above $250/MWh in New York City and PJM West, and above $300/MWh in Long Island. Usual prices for these areas are $30-$60/MWh," the government agency said in an Energy Market Alert released Thursday.

Coca-Cola blames the weather
Coca-Cola is pointing to a soggy spring for disappointing earnings. Paul Walsh of The Weather Channel and CNBC's Steve Liesman weigh in.

When power demand peaks to these levels and generators push equipment toward maximum capacity, it strains the transmission system or power grid, greatly increasing the risk of a power failure.

In an effort to avoid that outcome, the New York Power Authority on Wednesday "activated a program to reduce electricity use at public-facility locations in New York City in response to anticipated higher energy demand due to the hot weather."

A recent NYPA Tweet:

NYPA power program helps as NYC power demand climbs toward 2-year highhttp://bloom.bg/17llvOe via @BloomBergNews

—By Breaking Energy's Jared Anderson.

Featured

  • Pump jacks and wells are seen in an oil field on the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is on the verge of a boom, March 23, 2014 near McKittrick, California.

    Brent crude futures turned lower after Russia said top diplomats have agreed to take immediate steps toward calming tensions in Ukraine.

  • An employee wipes a TV screen in a shop in Moscow, on April 17, 2014, during the broadcast of President Vladimir Putin's televised question and answer session with the nation.

    Russian President Vladimir Putin warned of possible disruption to Europe's gas supply on Thursday, as the U.S. confirmed it would send additional military support to Ukraine.

  • A former BP employee will pay to settle allegations of insider-trading during the 2010 Deepwater Horizon oil spill.

  • Pro-Russian activists seized the main administration building in the eastern Ukrainian city of Donetsk.

    Deadly clashes in eastern Ukraine have spiked fears of all-out war in the region. So who are the armed, flag-waving rebels who appear to be behind it all?

Contact Energy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More