Electricity Demand Hits Multi-Year Highs in the Eastern U.S. Amid Heat Wave: EIA

Electricity demand in the PJM Interconnection and ISO New England (ISO-NE) hit multiyear highs on June 23 and June 24 respectively, according to a June 27 report published by the U.S. Energy Information Administration. The significant demand increase can be attributed to a heat wave that impacted most of the Eastern U.S.

Electricity load in the PJM Interconnection hit a high of 160,560 megawatts (MW) on June 23 between 5 and 6p.m. The load on the grid exceeded PJM’s seasonal peak load forecast of 154,000 MW but remains below the record high load of 165,563 MW during 2006. Majority of the PJM’s generation during the peak load on June 23 came from natural gas (44 percent). Nuclear accounted for 20 percent, coal for 19 percent and solar for six percent. The remaining generation came from a combination of wind, petroleum, hydro and other generation. Petroleum generation is an expensive input fuel in the electricity generation mix and is only utilized during large demand loads. On June 23, petroleum generation was three times more compared to the same hour on June 22.

Demand hit a high on the following day on the ISO-NE. Electricity load in the ISO-NE hit a high of 25,898 MW on June 24 between 6 and 7p.m. Electricity demand during the peak was the highest in the region since 2013. As a result of the higher demand, wholesale electricity prices on the day peaked at $1,110/MWh at 6pm, compared to peak prices of $65/MWh during the previous week on June 17.

Majority of the ISO-NE generation during the peak load on June 24 came from natural gas (47 percent). Imports and petroleum accounted for 12 percent, 13 percent from nuclear, four percent from renewable sources and one percent from coal.