Internal Market Monitor releases Fall 2022 Quarterly Markets Report

High natural gas prices continued to drive increases in the cost of wholesale electricity in New England in the fall of 2022, according to the latest quarterly report by ISO New England’s Internal Market Monitor (IMM). But the quarter’s year-over-year increase, 9%, was significantly smaller than the summer’s increase of 79%.

The Fall 2022 Quarterly Markets Report, which covers the period from September 1, 2022, through November 30, 2022, presents an assessment of each of the region’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 fall of 2022 was $2.39 billion, up 9% from $2.19 billion last fall. The cost per megawatt-hour (MWh) of load served was $89, compared to $79 for the fall of 2021.
• Energy market costs totaled $1.85 billion, up 13% from $1.64 billion last fall. Driving the increase was the cost of natural gas, which rose 18% compared to the fall of 2021.
• Capacity costs totaled $501 million, down 6% from $532 million last fall. Lower capacity clearing prices from the 13th Forward Capacity Auction (FCA 13) accounted for the drop. This fall’s payment rate for new and existing resources was $3.80 per kilowatt-month (kW-month), compared to $4.63/kW-month last fall.