‘Heat dome’ over eastern US sends electricity prices soaring

{"text":[[{"start":7.8,"text":"Electricity prices soared and many thousands were left without power, as a “heat dome” spread across much of the US east of the Mississippi River and pushed temperatures towards 40C ahead of the July 4 weekend."}],[{"start":22.15,"text":"The National Weather Service placed 130mn people under an extreme heat warning on Thursday. More than 150,000 households were without power across the Northeast, Midwest and South, including more than 27,000 in New York."}],[{"start":38.9,"text":"Temperatures reached 100F (37.7C) across the east coast and parts of the Southwest. A prolonged and dangerous heatwave was forecast across the central and eastern US through the end of the week and into the Independence Day weekend."}],[{"start":null,"text":""}],[{"start":55.099999999999994,"text":"Wholesale spot electricity prices rose more than 240 per cent in New England and doubled in New York City, according to data from the Energy Information Administration. Prices rose more than 50 per cent in the Midwest."}],[{"start":68.94999999999999,"text":"The increased cost, following the surge in demand to power air-conditioning units in homes and offices, adds to affordability concerns for Americans following months of elevated petrol and food prices."}],[{"start":80.99999999999999,"text":"“We’re seeing extremely high prices across the [Northeast and Midwest] and stretching into other areas of the country,” said Mark Dyson, a managing director in the Rocky Mountain Institute’s electricity practice. “The run-up in price is natural supply and demand around a scarce resource.”"}],[{"start":null,"text":""}],[{"start":96.94999999999999,"text":"Consolidated Edison, the main utility for New York, said it was reducing voltage by 8 per cent in parts of the Bronx and Manhattan, asking its customers across the city to conserve energy."}],[{"start":108.29999999999998,"text":"Mayor Zohran Mamdani took to X to implore New Yorkers to set their air conditioning units to 78F (25.5C), turn off lights and wait till morning to use dishwashers and laundry machines."}],[{"start":122.64999999999998,"text":"PJM, the electricity grid operator for the mid-Atlantic and much of the Midwest, experienced a record-high net load across its grid on Wednesday, reaching a peak at about 8pm."}],[{"start":null,"text":""}],[{"start":134.29999999999998,"text":"On Thursday afternoon it told neighbouring regions that it might limit electricity exports. "}],[{"start":140.45,"text":"“This heatwave highlights a challenge we’ve been talking about for some time: electricity demand is growing much faster than new energy supply is coming online,” said Calvin Butler, chief executive of Exelon, the US’s largest utility by customer."}],[{"start":155.25,"text":"The utility group’s subsidiaries in Chicago and Washington directed customers to reduce their thermostats."}],[{"start":161.75,"text":"Duke Energy, which serves North and South Carolina among several other states, said it would implement demand-response programmes — in which customers are paid to temporarily reduce their usage — and that it would purchase power from neighbouring regions to keep up with demand."}],[{"start":176.6,"text":"PJM also issued an order requiring registered demand-response customers in several utility zones to reduce electricity use beginning at 4.45pm ET."}],[{"start":187.54999999999998,"text":"The US had about 2mn thermostats that were part of demand-response programmes, estimated Devrim Celal, chief flexibility and marketing officer at Kraken, a utility software company. But the extent utilities can pull this lever is often limited by manufacturers and the need for consumer comfort."}],[{"start":205.24999999999997,"text":"“How successful they are will depend on how those programmes have been configured. Some of them have quite rigid constraints on how and how often they could be used,” he said."}],[{"start":214.34999999999997,"text":"Transport was also disrupted, with Amtrak trains across the Northeast being diverted and cancelled."}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":219.89999999999998,"text":"Where climate change meets business, markets and politics. Explore the FT’s coverage here."}],[{"start":226.74999999999997,"text":"Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here"}],[{"start":241.14999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783061977_1063.mp3"}