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Texas power demand to break June, July records in heat wave, grid operator states

The Texas powergrid operator projection on Wednesday that electricity use will break peakdemand records for June and July over the next week as homes and companies crank up air conditioning system to leave a heat wave.

In reaction to that need spike, spot power and natural gas prices jumped to their greatest levels given that previously this year.

The Electric Dependability Council of Texas (ERCOT), which runs most of the power grid for 27 million clients, stated the system was operating usually with adequate supply available to fulfill anticipated need.

High temperatures in Houston, the state's most significant city, will rise from 95 degrees Fahrenheit (35 degrees Celsius) on Wednesday to 98 F on Thursday and most likely stay in the mid-90s F. through mid-August, according to AccuWeather meteorologists.

Even though that is just a little over the city's regular. high of 93 F at this time of year, AccuWeather said it will feel. more like 107 F on Wednesday and Thursday when factoring in. humidity and wind.

After breaking peak-demand records numerous times in April. and May, ERCOT forecasted power need would rise from 80,180. megawatts (MW) on Wednesday to 83,422 MW on Thursday, which. would top the 80,787-MW record for June set in 2023.

ERCOT anticipated demand would reach 84,251 MW on July 1, which. would break the 83,047-MW record for July set in 2023.

The grid's all-time peak was 85,508 MW on Aug. 10, 2023.

Experts expect ERCOT electricity usage will top that all-time. high this summer due to economic and population development in Texas. and fast-rising demand for power from information centers that run. expert system and cryptocurrency mining.

One megawatt can power 800 homes on a regular day but as few. as 250 on a hot summer day in Texas.

AREA RATES JUMP

In the spot market, next-day power costs at the ERCOT North. Hub << EL-PK-ERTN-SNL >, that includes Dallas, skyrocketed 64% to a. one-month high of around$ 55 per megawatt hour (MWh), according. to LSEG prices information. That compares with an average

of$ 34 per MWh so far in June,. $59 in May, $31 this year, $80 in 2023 and $66 over the prior. five years (2018-2022).

Next-day gas at the Waha center << NG-WAH-WTX-SNL > in the Permian>. Basin in West Texas soared 352% to a five-month high of positive. $ 2.52 per million British thermal systems (mmBtu) for Wednesday,. up from an unfavorable $1 for Tuesday.

That compares with approximately $1.16 per mmBtu so far in. June, 19 cents in May, 87 cents up until now this year, $1.82 in 2023. and $2.96 over the previous 5 years

(source: Reuters)