Dive Brief:
- New England continues to experience low power and natural gas prices, with mild weather, cheap fuel and lower demand all playing a factor, according to ISO New England.
- July's average wholesale power prices were the third-lowest since March of 2003, while gas prices were more than a third lower than a year ago..
- Despite weather similar to 2014, July demand this year was about 1.4% lower, at 12,077 GWh.
Dive Insight:
New England consumers are benefiting from mild weather and cheap gas to access some of the most economical power seen in the region in decades. According to the New England grid operator, average wholesale power prices this July were the third-lowest since March 2003, about $25.40/MWh and 27% below year-ago prices. And that follows on June's averages, which were the lowest monthly prices in more than a decade.
"In fact, wholesale power and natural gas prices during April, May, June and July this year are among the lowest monthly averages since March 2003 in New England," the ISO said in a market update on its Newswire.
But the low prices also closely follow near-record-high prices earlier this year, "highlighting the price volatility stemming from natural gas pipeline constraints during periods of high demand in New England," the ISO said. February was the coldest month in more than 50 years, and wholesale prices averaged $126.70/MWh.
Despite weather similar to last year, July demand slipped 1.4% to 12,077 GWh, the fifth lowest total since 2003. The ISO said peak demand for the month hit 24,398 MW on July 20 during the hour from 4 p.m. to 5 p.m., when the average temperature in New England was 89 degrees.
New England's all-time record demand came during an August 2006 heat wave, when demand reached 28,130 MW. Because air conditioning use is more common than electric heating in New England, weather has greater impacts on peak use in the summer.