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Monday
May082017

Winter 2017 markets report reviews wholesale market outcomes during December 2016 and January and February 2017

The Winter 2017 Quarterly Markets Report prepared by the Internal Market Monitor (IMM) of ISO New England reviews wholesale energy market outcomes for the three-month period from December 1, 2016, through February 28, 2017.

The Winter 2017 Quarterly Markets Report notes that the total wholesale cost of electricity (including energy, capacity, and ancillary services) during the three-month period was $1.7 billion, up 27% compared to the market value of $1.3 billion during the winter of 2016. The average real-time wholesale energy price was $39.89 per megawatt-hour (MWh), 45% higher than the average real-time price during winter 2016 of $27.58/MWh. The year-over-year increase was driven by natural gas prices that were 55% higher, averaging $5.29 per million British thermal units (MMBtu) compared to the $3.41/MMBtu average price during the previous winter. Colder temperatures during December 2016 compared with December 2015 drove most of the year-over-year increase in quarterly average prices. In December 2016, natural gas averaged $6.85/MMBtu, a 200% increase over the previous December, and real-time electricity prices averaged $53.83/MWh, a 150% increase. Comparatively warmer weather in January and February 2017 brought gas and electricity prices close to the average prices during the same months of 2016.

The quarterly report includes a section reviewing the results of the 11th Forward Capacity Market (FCM) Auction (FCA #11). The report concludes that the auction was competitive.