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Tuesday
Jul172018

Spring 2018 markets report reviews wholesale market outcomes during March, April, and May 2018 

The Spring 2018 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 March 1 through May 31, 2018.

The Spring 2018 Quarterly Markets Report notes that the total wholesale cost of electricity (including energy, capacity, and ancillary services) during the three-month period was $1.87 billion, up 45% over the market value of $1.29 billion during the spring of 2017. The value of the energy market was $1.06 billion, a 10% increase over spring 2017 costs. The increase was driven by higher natural gas prices, which increased 8% year-over-year. The higher total cost of the wholesale markets was also affected by higher Forward Capacity Market prices, up $479 million to total $767 million for the period.

The average day-ahead and real-time wholesale energy prices were $34.69 per megawatt-hour (MWh) and $33.27/MWh, respectively. The day-ahead average was 13% higher than the previous spring’s $30.78/MWh, while the real-time average price was 4% higher than the spring 2017 real-time average of $31.92. The year-over-year increase was driven by natural gas prices that were 8% higher, averaging $3.84 per million British thermal units (MMBtu) compared to the $3.55/MMBtu average price during the previous spring. The capacity price for the period from June 1, 2017, through the spring quarter ending on May 31, 2018, rose due to a system-wide capacity deficiency after a wave of retirements.