Entries in wholesale prices (46)


Spring 2016 markets report reviews wholesale market outcomes during March, April, and May 2016 

The Spring 2016 Quarterly Markets Report prepared by the Internal Market Monitor (IMM) of ISO New England reviews wholesale energy market outcomes for March, April, and May of 2016. The report notes that the total wholesale cost of electricity (including energy, capacity, and ancillary services) during the three-month period was $1.02 billion, down 38% compared to the market value of $1.64 billion during the spring of 2015. The average real-time wholesale energy price was $22.10 per megawatt-hour, a decline of 40% compared to the spring of 2015. The year-over-year decline was driven by lower demand due to milder weather and lower natural gas prices that averaged $2.29 per million British thermal units, 45% lower than the average price during the spring of 2015. The report reviews the performance of Coordinated Transaction Scheduling (CTS), which was implemented December 15, 2015, to improve the efficiency of wholesale power trades between New England and New York. And the report examines the effects of revisions to the regulation market rules since July 2013.


Wholesale electricity prices and demand in New England, July 2016

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

July’s average monthly power price of $29.33 per megawatt-hour (MWh)* was up 15.5% from the July 2015 average price of $25.40/MWh and 38.1% higher than the June 2016 average price of $21.24/MWh.

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Winter 2015/2016 recap: New England power system performed well and prices remained low

Compared to winters past, the winter of 2015-2016 featured above-average temperatures and a brief cold snap in February. Many in the region have called it the “the winter that wasn’t.”

According to the National Oceanic and Atmospheric Administration (NOAA), this winter was the warmest on record in the US. The average temperature in the lower 48 states was 36.8°F, which is 4.6°F above the 20th-century average. That beats the previous record of 36.5 degrees set in the winter of 1999-2000.

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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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ISO-NE report on market price formation highlights complexity of issue, regional improvements

Uplift costs are just 1–2% of the total energy market value in New England

On March 4, ISO New England filed its responses to Federal Energy Regulatory Commission (FERC) questions on price formation in wholesale electricity markets. The ISO report includes detailed answers to the technical, complex issues raised by FERC and highlights the significant strides made regionally to achieve pricing that accurately and transparently signals the costs of operating New England’s power system.

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Summer 2015: The lowest natural gas and power prices since 2003

The summer of 2015 in New England stands out, but not because of the weather. Overall, the summer was relatively mild and consumer demand for electricity was about average. The reason this summer was remarkable: Wholesale power prices were the lowest they’ve been since the competitive wholesale electricity markets were launched in 2003. The average real-time wholesale electricity price for June, July, and August was $26.86 per megawatt-hour (MWh). The second-lowest summer average price occurred the previous summer, during June, July, and August of 2014, at $34.31.

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