Wholesale electricity prices surged in New York as summer weather took the region by storm, prompting residents and businesses to crank their air conditioners, raising demand and electricity rates, Bloomberg reports.

According to the news source, spot power in New York City grew to an average of $339.82 per megawatt-hour after jumping as high as $1,647.56 earlier in the day. The New York Independent System Operator (NYISO) stated that during peak hours on May 28, electricity was traded at an average of $57.34.

"Today’s demand is expected to be up with the heat and humidity, but power supplies are more than adequate to meet that demand," said Michael Clendenin, a spokesman for Consolidated Edison Inc. "A cold front forecast to move in later today and tomorrow will bring temperatures back to normal by the end of the week."

In New York, energy customers have the option to switch energy providers due to energy deregulation laws. By signing contracts with retail energy providers, customers can lock in rates that otherwise may rise and fall when electricity is purchased from the utility.