Internal Market Monitor releases Fall 2021 Quarterly Markets Report
The report concluded that the total estimated wholesale market cost of electricity in Fall 2021 was $2.2 billion, up 67% from $1.32 billion in Fall 2020. Increases in energy market and net commitment period compensation (NCPC) costs offset decreases in capacity market and ancillary services costs during the period, according to the report.
Energy costs totaled $1.65 billion, an increase of 137% compared to Fall 2020 which was driven by higher natural gas prices, which were up 163% over the previous period, according to the IMM.
Lower capacity clearing prices led to a 12% decline in capacity costs compared to the previous fall, the IMM said in the report.