Internal Market Monitor releases Summer 2022 Quarterly Markets Report

The cost of electricity on New England’s wholesale markets in the summer of 2022 was 79% higher than in the summer of 2021, according to the latest quarterly report by ISO New England’s Internal Market Monitor (IMM).

The Summer 2022 Quarterly Markets Report, which covers the period from June 1, 2022, through August 31, 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 summer of 2022 was $3.92 billion, up 79% from $2.19 billion last summer. The cost per megawatt-hour (MWh) of load served was $116, compared to $65 for the summer of 2021.
• Energy market costs totaled $3.42 billion, up 110% from $1.63 billion last summer. Driving the increase was the cost of natural gas, which rose 131% compared to the summer of 2021.
• Capacity costs totaled $423 million, down 20% from $530 million last summer. Lower capacity clearing prices from the 13th Forward Capacity Auction (FCA 13) accounted for the drop. This summer’s payment rate for new and existing resources was $3.80 per kilowatt-month (kW-month), compared to $4.63/kW-month last summer.