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Lower natural gas prices led to a 57% reduction in energy market costs in New England compared to the previous year.
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The average natural gas price, a key driver of wholesale electricity prices, was down 64% compared to June 2022.
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Record energy prices defined the energy market in 2022, according to the latest annual report by ISO New England’s Internal Market Monitor (IMM).
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Wholesale power prices fell for the third straight month in May.
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The total estimated wholesale market cost of electricity for winter 2023 was nearly $1 billion less than the previous winter.
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Wholesale power prices fell year over year in April as natural gas prices continued to drop.
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Lower natural gas prices drove year-over-year declines in wholesale power prices in March.
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The period from December through February averaged 5°F warmer than normal. Meanwhile, electricity demand dropped by 4% compared to last winter.
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Elevated natural gas prices throughout the month drove increases in wholesale electricity prices.
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The ISO declared a capacity deficiency, meaning the region’s supply of electricity was insufficient to meet required operating reserves in addition to satisfying consumer demand.
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