New York and Baltimore Electricity Rates Surge Amid Looming Colder Weather

Extreme Cold Drives Power Prices to Record Highs in Major US Cities

Photographer: Andres Kudacki/Getty Images

Electricity costs are soaring to unprecedented levels in New York City and other densely populated regions as an extraordinary cold snap is expected to worsen in the coming days.

Starting Friday, another wave of frigid polar air is set to send temperatures in the eastern US plunging up to 30 degrees Fahrenheit (about -17°C) below seasonal norms. Meanwhile, a powerful “bomb cyclone” threatens to blanket coastal cities with heavy snowfall later in the week.

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On Tuesday, electricity prices in Baltimore and Washington DC exceeded $4,000 per megawatt-hour as the power grid faced an emergency. In New York City, next-day electricity rates surged by 31%, setting new records for the third consecutive day.

Photographer: Spencer Platt/Getty Images

The regional grid operator, which supplies power to more than 67 million people from Chicago to Virginia, is now preparing to shift large consumers like data centers to backup generators. This move aims to conserve electricity for homes, hospitals, and smaller users.

Authorities report that at least 41 fatalities across 13 states have been attributed to the storm, including two suspected hypothermia deaths in Louisiana.

As of 6 p.m. Tuesday in New York, approximately 450,000 households and businesses nationwide were still experiencing power outages, according to PowerOutage.com.

The cold spell shows no signs of easing. The US Weather Prediction Center warns that Baltimore could remain below 28°F for nine consecutive days—a stretch not seen since the 19th century.

New York City is unlikely to see temperatures rise above freezing until Monday, according to the local National Weather Service. Ferry operations across the city were suspended Tuesday afternoon due to severe ice accumulation in the East and Hudson rivers and local harbors, with officials warning the shutdown may last several days.

As the cold persists, the strain on infrastructure—from power plants to transmission lines—continues to mount.

“Extended periods of subzero temperatures put increasing stress on gas and electricity systems,” explained Arushi Sharma Frank, a senior associate at the Center for Strategic and International Studies. “As this cold snap stretches into its third and fourth day, we’re contending with the physical limits of aging equipment and the risk of depressurized pipelines.”

Energy Supply Challenges and Market Impact

The operator of New York’s power grid reported that roughly 3 gigawatts of generating capacity—the output of three nuclear plants—was offline due to multiple fossil-fuel plant failures and reduced solar production.

Kevin Lanahan, a senior vice president at the New York Independent System Operator, noted, “These supply and demand challenges are reminiscent of the pressures we saw during last June’s heat wave.”

Shares of power producers climbed, with NRG Energy Inc. rising over 4%, and gains also seen for Vista Corp., Talen Energy Corp., and Constellation Energy Corp.

With frigid conditions expected to persist in the Ohio River Valley and Mid-Atlantic through next week, the Northeast is unlikely to receive much relief from neighboring regions.

Historic Cold and Growing Energy Demand

David Roth, a meteorologist at the Weather Prediction Center, remarked, “While not entirely unprecedented, it’s been decades since the eastern US has experienced such a prolonged period of intense cold, especially across the Mid-Atlantic.”

After years of steady demand, US electricity usage is climbing rapidly as more households switch to electric heating and data centers proliferate nationwide. The ongoing freeze has also raised concerns about fuel supply interruptions at natural gas plants, as wells and pumping stations freeze.

Upcoming Weather Threats

On Tuesday, a fast-moving clipper system brought snow from the Great Lakes into the Northeast. However, the more significant threat is a potential bomb cyclone expected later this weekend. Forecast models indicate the storm could bring snow and rain along the coast from South Carolina to New Jersey, as well as to Boston and Maine.

“If the storm tracks far offshore, it may spare the coast,” Roth said. “But with five days to go, forecasts could still change.”

With reporting by Brian K. Sullivan.

(This story has been updated to include power conditions in Baltimore and Washington DC.)

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