ISO: Power prices fell in December
(UPDATED Feb. 3 at 10 a.m.) Milder weather and lower demand led to drops of more than 50 percent in natural gas and wholesale power prices in December, the region’s grid operator said.
ISO New England said the average real-time price of wholesale power, $42.47 per megawatt-hour, fell about 57 percent from the December 2013 average of $98.53. And it was down by about 5 percent from November’s price of $44.86.
Meanwhile, the price of natural gas, $6.13 per British thermal unit, was down 53 percent from December 2013, and 0.5 percent from November 2014.
In December 2013, colder weather increased consumers’ use of natural gas for heating, resulting in natural pipeline constraints that drove prices higher, ISO said. Those high fuel prices, in turn, pushed up wholesale power prices.
Peak power demand was down 7.6 percent over the year, while electricity use fell 5 percent. However, power use rose from November 2014, with peak demand up 8 percent and electricity use 9.8 percent.
CLARIFICATION: The original version of this article may have indicated that the price declines represented the entire year. ISO New England said the prices compare only those in December 2014 with those in December 2013.
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