Entries in annual prices (7)

Thursday
May232019

ISO-NE’s wholesale electricity and capacity markets were competitive in 2018

The 2018 Annual Markets Report, issued by the Internal Market Monitor at ISO New England, concluded that New England’s wholesale power markets were competitive in 2018. The report notes that the total cost of wholesale electricity markets was $12.1 billion in 2018, which represents an increase of about 32% over 2017. Of the total, energy costs rose 34% to $6 billion. The energy increase was driven by higher natural gas prices, particularly during winter, and higher power demand during a hot and humid summer. Capacity costs rose by $1.4 billion to $3.6 billion, reflecting higher clearing prices in the eighth and ninth Forward Capacity Auctions after a spate of generator retirements. Capacity costs will begin to decline after June 2019, reflecting the entry of new resources and a higher capacity surplus. Regional network load costs were $2.3 billion to pay for the use of transmission facilities and other services. The costs for reliability services such as operating reserve, regulation and net commitment period compensation, totaled about $200 million in 2018.

Tuesday
Mar122019

Average annual power price rose in 2018, but was still lower than first full year of markets

New England’s average wholesale electricity price in 2018 rose over the 2017 price, but still ranked as the six-lowest since the current wholesale markets were implemented in 2004. Wholesale prices rose in 2018 because the cost of natural gas, the primary fuel used to produce electricity, was higher. Higher consumer demand for power was also a factor, as well as an extreme cold spell during the first week of January that caused prices to spike. Wholesale prices in 2018 were higher than power prices in 2017, but 2017 had the second-lowest wholesale prices since 2004, the first full year of operation for the current markets. Overall, since 2004, the average annual price of wholesale electricity in New England has fallen 19%. Read more in the press release.

Tuesday
Mar062018

New England’s wholesale electricity prices in 2017 second-lowest since 2003

Last year’s wholesale electricity prices were the second-lowest in 15 years due to low fuel costs and relatively low consumer demand for power during most of the year. The total value of New England’s wholesale electricity market in 2017 was $4.5 billion, about 9 percent higher than 2016’s record-low $4.1 billion value in 2016, which holds the record for the lowest average annual price since 2003. The average annual wholesale power price in New England last year was $33.94 per megawatt-hour. For more information, read the press release.

Monday
Feb272017

New England’s wholesale electricity prices in 2016 lowest since 2003  

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.

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Tuesday
Mar292016

New England’s 2015 average wholesale power price fell to second-lowest level since 2003

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.

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Tuesday
Mar182014

Higher natural gas prices pushed up prices for wholesale electric energy in 2013

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.

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