Last year’s wholesale electricity prices were the lowest in 13 years due to low natural gas prices and mild weather that dampened demand. The total value of New England’s wholesale electricity market in 2016 was $4.1 billion, $1.1 billion less than the $5.2 billion value for wholesale electricity in 2012, the previous year with the lowest market value. The average annual wholesale power price in New England last year was $28.94 per megawatt-hour. For more information, read the press release.
Entries in annual prices (6)
ISO New England's External Market Monitor (EMM) has released its Annual Assessment of Electricity Markets in New England, which is an evaluation of the efficiency and competitiveness of New England’s wholesale electricity markets during 2015. The report, published in June 2016, provides a summary of market outcomes and assesses the enhancements made over the past year to help improve market operation and competitiveness.
The 2015 Annual Markets Report, issued by the Internal Market Monitor at ISO New England, concluded that New England’s wholesale power markets were competitive in 2015. The report found that average prices for both natural gas and wholesale electricity were the lowest since 2012. The average wholesale price for electric energy was $41 per megawatt-hour, and the total value of the region’s energy market was $5.9 billion.
Preliminary figures from ISO New England show that 2015 included six of the 10 lowest average monthly wholesale electricity prices since 2003, when the wholesale markets in the current form were launched. The preliminary annual average price, at $41 per megawatt-hour, was the second-lowest annual price since 2003, tracking the price of natural gas, which was also at its second-lowest point in the same period. Read the press release.
Pipeline constraints and higher demand pushed up prices for both natural gas and power
Natural gas pipeline constraints and higher demand in New England caused the average price of natural gas to rise 76% in 2013, which in turn pushed the wholesale electric energy price up by 55% over 2012’s record low price. Natural gas is the predominant fuel used to generate the region’s electricity, at about 46% of total generation in 2013, so wholesale power prices tend to track the price of natural gas. Preliminary data show that the wholesale energy price averaged $56.06 per megawatt-hour (MWh) in 2013, while natural gas averaged $6.97 per million British thermal units (MMBtu). The wholesale energy price was 30% lower than the all-time high of $80.56/MWh during 2008.
Lower natural gas prices and lower demand combine to push electricity prices down to a 10-year low
Preliminary figures from ISO New England show that wholesale electric energy prices dropped almost 23% in 2012, driven down by lower natural gas prices and lower demand. Additionally, the 2012 price was nearly 26% lower than the average price set in 2003, the year that ISO New England introduced wholesale competitive markets in their current form.