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Power prices jump to highest since 2020 amid western heatwave

California Heat Wave
Posted at 1:52 PM, Sep 06, 2022
and last updated 2022-09-06 17:15:30-04

Power prices in states like California and other western states have seen dramatic increases that have jumped to highs not seen since 2020.

Tuesday's high prices jumped to levels not seen since the power grid operator in California imposed rotating outages in Aug. 2020, Reuters reported.

A tough heatwave has stuck around in multiple western states leaving drought to wreak havoc on areas.

California's Independent System Operator (ISO) has urged residents to cut their power usage during late afternoons and early evenings.

Elliot Mainzer, CEO of the ISO, said, "We need a reduction in energy use that is two or three times greater than what we've seen so far as this historic heat wave continues to intensify."

An August report from industry publication Utility Dive said power costs in the U.S. were expected to jump by 2.5% in 2022, reaching a record 3.9 billion MWh. The report cites the improving U.S. economy along with hot summer weather according to data from the Energy Information Administration.

In July, the National Weather Service (NWS) said that 60 daily high-temperature records had already been broken or tied in areas including cities in Utah and Texas.