Internal Market Monitor releases Winter 2022 Quarterly Markets Report

High natural gas prices drove an 85% year-over-year increase in the region’s wholesale market cost of electricity for the winter of 2022, according to the latest quarterly markets report by ISO New England’s Internal Market Monitor (IMM).

The Winter 2022 Quarterly Markets Report, which covers the period from December 1, 2021 through February 28, 2022, presents an assessment of each of the ISO’s wholesale electricity markets, based on market data, performance criteria, and independent studies.

Highlights include:

• The total estimated wholesale market cost of electricity for the winter of 2022 was $4.28 billion, up from $2.32 billion last winter. Higher costs in the real-time and day-ahead energy markets drove the increase. The cost per megawatt-hour (MWh) of load served was $137, compared to $75 for the winter of 2021.
• Energy market costs totaled $3.73 billion, up 119% from $1.7 billion last winter. Natural gas prices drove the increase, rising 147% compared to the winter of 2021 and reaching their highest levels since 2014. Daily average natural gas prices rose above $20 per million British thermal units (MMBtu) on 32 days this winter, the report said. Gas index prices did not exceed $20 on any day last winter.
• Capacity costs totaled $531 million, down 13% from $607 million last winter. Lower capacity clearing prices from the twelfth Forward Capacity Auction (FCA 12) accounted for the drop. This winter’s payment rate for new and existing resources was $4.63 per kilowatt-month (kW-month), compared to $5.30/kW-month last winter.