New England electric prices fell 35% in 2015
Photo | Courtesy of ISO New England
The ISO New England control room in Holyoke manages energy transmission throughout Massachusetts.
Electricity prices in New England fell by 35 percent in 2015 on the back of plummeting natural gas prices. according to ISO New England.
The operator of the region’s bulk power system and wholesale electricity markets released its 2015 Annual Markets Report with the findings that natural gas prices, coming in at 41 percent less than the 2014 average, spurred on a drop in electricity prices. The prices of both natural gas and wholesale power were the lowest since 2012, according to the organization.
The price of natural gas is a key factor in the price of wholesale power because the fuel generates 49 percent of the electricity produced in New England. The cost of fuel is the largest input into the cost of electricity production, according to ISO.
The drop in natural gas prices was attributed to increased domestic production, above-average storage levels nationally, and mild weather that moderated demand for natural gas for heating and power generation for most of the year, according to the organization.
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