Eastern U.S. power prices surge as heatwave strains grids and disrupts service

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Eastern U.S. power price surge

Highlights

Wholesale spot electricity prices rose over 240 percent in New England, doubled in New York City, and increased over 50 percent in the Midwest due to the heatwave.
The National Weather Service placed 130mn people under an extreme heat warning as temperatures hit 100F across the east coast and Southwest, causing utilities like Consolidated Edison to cut voltage and request conservation.
PJM recorded peak net load Wednesday at around 8pm, warned of potential limits on electricity exports, and activated demand-response cuts amid growing demand outpacing new supply, with Amtrak services disrupted.

Grid stress builds across eastern markets

As reported by the Financial Times, wholesale spot electricity prices rise more than 240 per cent in New England and double in New York City, while prices increase by more than 50 per cent in the Midwest as the heat dome expands east of the Mississippi River.

The National Weather Service places 130mn people under an extreme heat warning on Thursday, with temperatures reaching 100F across the east coast and parts of the Southwest. A prolonged heatwave is forecast across the central and eastern U.S. through the end of the week and into the Independence Day weekend.

Mark Dyson, managing director in the Rocky Mountain Institute's electricity practice, says the rise reflects intense pressure on a scarce resource as demand for cooling surges in homes and offices. The higher power costs add to affordability concerns for consumers already facing elevated petrol and food prices.

Utilities curb demand and transport faces disruption

Consolidated Edison says it is reducing voltage by 8 per cent in parts of the Bronx and Manhattan and asks customers across New York City to conserve electricity. Mayor Zohran Mamdani urges residents on X to set air conditioners to 78F, switch off lights and delay using dishwashers and laundry machines until morning.

PJM, the grid operator for the mid-Atlantic and much of the Midwest, records a peak net load on Wednesday at about 8pm and tells neighbouring regions on Thursday afternoon that it may limit electricity exports. PJM also orders registered demand-response customers in several utility zones to cut usage beginning at 4.45pm ET.

Calvin Butler, chief executive of Exelon, says the heatwave underlines how electricity demand is growing faster than new energy supply is coming online. Duke Energy says it will activate demand-response programmes and buy power from neighbouring regions to meet demand, while Amtrak services across the Northeast are being diverted and cancelled.

Our earlier article on CleanSpark (CLSK) highlighted how a proposed 3.2% electricity rate hike from Jellico Utilities could raise input costs for the company’s bitcoin mining operations and weigh on sentiment. We also noted that CLSK was trading below key moving averages amid strong seller pressure, with downside risks tied to both higher power costs and local operational/regulatory frictions.

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