California Freeze Sends Power Prices Surging as New York Thaws

(Bloomberg) -- Shivering Californians saw power prices soar to the highest level in more than three months Tuesday morning as thawing New Yorkers enjoyed a respite and the prospect of record-breaking warmth.

Wholesale power prices in Northern California hit an average $200.75 a megawatt-hour in the hour ended at 8 a.m. local time, according to Genscape Inc. data compiled by Bloomberg. That’s the highest level since Oct. 31. The price spike comes as the National Weather Service issued freeze warnings for a large swath of the central part of the Golden State through Wednesday morning, with temperatures forecast to dip into the single digits Fahrenheit in the mountains.

Meanwhile, thermometers along the East Coast are expected to register as much as 30 degrees above normal Wednesday, with temperatures in the 70s Fahrenheit (mid-20s Celsius) in New York and Washington. That sent wholesale power prices in New York to an 11-week low Tuesday morning, according to Genscape data.

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net.

To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Margot Habiby, Joe Ryan

©2018 Bloomberg L.P.