Entries in monthly prices (12)

Friday
Feb242017

Monthly wholesale electricity prices and demand in New England, January 2017

January’s average price of electricity rose on higher natural gas prices

The average price of natural gas rose 14% during January 2017, pushing up the wholesale power price in New England by 8%, to $36.66 per megawatt-hour (MWh)*, from the January 2016 price of $33.99/MWh.

The smaller percentage increase in wholesale power prices compared to the natural gas increase was due to lower demand, as well as changes in the fuel mix in January. Total energy consumption in New England declined by 3% in January, compared to the previous January. Nuclear output was lower in January 2016, by about 200 gigawatt-hours (GWh) or 7.6% to 2,988 GWh, likely requiring the use of higher-priced resources. And output from low-priced wind resources was higher in January 2017, up by 48 GWh or 20% to 298 GWh, likely displacing some higher-priced resources.

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Monday
Feb062017

Monthly wholesale electricity prices and demand in New England, December 2016

December’s average price of electricity rose on colder temperatures, higher demand, and higher natural gas prices

The average price of natural gas more than tripled during December 2016 and that, combined with higher demand for power, caused the wholesale power price in New England to rise more than twice as high as the price in December 2015.

The price of natural gas rose 226% in December, driving a 152% increase in the wholesale electricity price, to $53.83 per megawatt-hour (MWh)* from the December 2015 average price of $21.35/MWh.

December’s cold temperatures pushed up demand for power. As measured by heating degree days**, December 2016 was much colder than December 2015, and much closer to the normal level of heating degree days during a New England December. Cold weather also drives up demand for natural gas for heating, resulting in natural gas pipeline constraints that cause natural gas prices to rise.

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Wednesday
Dec212016

Monthly wholesale electricity prices and demand in New England, November 2016

November’s average price of electricity fell on continuing low natural gas prices and low demand

Eight of the 10 months with the lowest wholesale power prices in 13 years occurred in 2015 and 2016, including November 2016, with the seventh-lowest monthly price. Low natural gas prices and lower demand for electricity brought November’s average monthly power price down 7%, to $24.30 per megawatt-hour (MWh)* from the November 2015 average price of $26.12/MWh. Total energy consumption in New England in November was the lowest of any November since 2000, and the sixth-lowest consumption of any month since 2000.

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Friday
Nov182016

Monthly wholesale electricity prices and demand in New England, October 2016

October’s average price of electricity fell on continuing low natural gas prices and low demand

Lower demand, driven by milder weather, and lower natural gas prices pulled October’s average monthly power price down 30%, to $22.72 per megawatt-hour (MWh)*, compared to the October 2015 average price of $32.62/MWh. The wholesale power price during October was the sixth-lowest since the wholesale electricity markets in their current form were launched in 2003 in New England, and the natural gas price was the eighth-lowest during that time period. Total energy consumption in New England in October was the lowest of any October since 2000, and the fourth-lowest monthly consumption.

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Thursday
Oct272016

Wholesale electricity prices and demand in New England, September 2016

September’s average price of electricity fell on lower natural gas prices and lower demand

Lower demand, driven by milder weather, and lower natural gas prices pulled September’s average monthly power price down 24%, to $27.21 per megawatt-hour (MWh)*, compared to the September 2015 average price of $35.83/MWh. September’s natural gas price was the 10th lowest since the wholesale electricity markets in their current form were launched in 2003 in New England, and the wholesale power price during September was the 12th lowest during that time period.

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Thursday
Sep222016

Monthly wholesale electricity prices and demand in New England, August 2016

August’s average price of electricity rose on higher natural gas prices and higher demand

August’s average monthly power price of $40.19 per megawatt-hour (MWh)* was up 13.7% from the August 2015 average price of $35.35/MWh and 37% higher than the July 2016 average price of $29.33/MWh. The month included some very hot and humid weather that drove up air conditioning use, which drove up demand for power by 3% over the month as a whole. The highest level for demand so far this year occurred on August 12, during a heat wave, when demand peaked at 25,521 MW. The day before, on August 11, shortage conditions developed – meaning the region was short of the required level of reserves – on the regional power system when several generators tripped offline, causing real-time prices to spike and requiring implementation of special operating procedures, including dispatch of demand-response resources in all of New England except Maine. The ISO New England control room maintained reliable power system operations throughout the day.

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