Scorching Heat to Raise Power Demand in Central, Eastern US

Power transmission lines during high temperatures in Columbia, South Carolina. Photo by Sam Wolfe /Bloomberg

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(Bloomberg) — Power prices are climbing in anticipation of a week-long heat wave expected to bring sweltering temperatures and high humidity to much of the central and eastern United States, taxing power and rail infrastructure.

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Though New York and Washington will see Friday’s daytime temperatures near records at around 100F (38C), the most intense heat is expected to shift and settle in across the southeast early next week. Some areas — including Atlanta, Nashville and Memphis — could experience heat close to 115F (46C) due to humidity, with little relief overnight, said Rich Otto, a forecaster for the US Weather Prediction Center in Maryland.

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“The expanse and duration of this heat is a little bit uncommon,” Otto said, adding that “it’s certainly going to be uncomfortable if you don’t have any way to cool down.”

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The New York Independent System Operator, which runs the statewide grid, reported power prices of as high as $2681.94 per megawatt-hour in Long Island and New York City as demand surged Friday afternoon. In Staten Island, Consolidated Edison asked nearly 65,000 customers to power off energy-guzzling appliances as crews worked to repair equipment, according to a statement from the company.

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As households crank air conditioners to help cut the heat, grid operators PJM Interconnection LLC, which operates the 13-state system from Illinois to Washington, DC, and the Midcontinent Independent System Operator, or MISO, have both issued alerts. Power plants and transmission line owners are directed to review their fuel supplies and flag any upcoming restrictions. 

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MISO expects demand to near its projected summer high of nearly 123 gigawatts. The operator has already warned of tight capacity in recent weeks due to forced generation outages. Meanwhile, electricity prices Friday for PJM rose 39% to $262.35/MWh for peak hours. The highest price was in Virginia, the data center capital of the US, which more than doubled from Thursday’s peak of $440.

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The AI boom is spurring the biggest surge in power demand in decades, leading to soaring utility bills amid tightened supply.

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The National Weather Service issued a string of heat advisories and extreme heat warnings across the East Coast and central US Friday, urging people to stay indoors. Rail operator Amtrak has warned of potential slowdowns and delays on several of its train routes due to high temperatures, which can cause mechanical infrastructure to expand. 

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Otto, the WPC meteorologist, said the heat wave is expected to break late next week as the high-pressure system, or “heat dome,” holding hot air in place begins to shift west.

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(Updates with details about New York power demand in fourth paragraph and heat advisories in eighth.)

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