ISO-NE’s wholesale electricity and capacity markets were competitive in 2019

The 2019 Annual Markets Report, issued by the Internal Market Monitor at ISO New England, concluded that New England’s wholesale electricity markets performed well and were competitive in 2019. The report notes that the total wholesalecost of electricity in 2019, at $9.8 billion, was considerably lower than in 2018, decreasing by 19%, or by $2.3 billion. Lower energy costs accounted for about 85% of the overall decrease. Energy costs totaled $4.1 billion, down 32%, or $1.9 billion, on 2018. The decrease was driven by lower natural gas prices, particularly due to milder weather during the high electricity demand seasons of summer and winter. This was in contrast to a 2018 winter with an extended cold snap, and a hot and humid summer in 2018, which led to high natural gas prices in winter and much higher electricity prices in both seasons. Capacity costs totaled $3.4 billion, down by 6%, or $0.2 billion, driven by clearing prices in the ninth and tenth Forward Capacity Auctions. Capacity costs will continue to decline after June 2019 and through June 2024, as new resources enter the market and a higher capacity surplus applies downward pressure to capacity prices. For more information on the Annual Markets Report and the ISO New England Internal Market Monitor (IMM), please visit the IMM webpage.