Warmer January temperatures this year drove the wholesale cost of electricity down nearly 50 percent, according to grid operator ISO New England.
A megawatt hour of electricity cost $33.99 in January, down from $65.59 in Jan. 2015, ISO-NE said. The lower electricity costs were linked to natural gas prices, which were down by a nearly identical margin over the year, to $4.73 per one million British thermal units.
Demand for electricity – and the natural gas that produces nearly half of it in the region – was lower because of relatively warmer temperatures. January averaged 29.7 degrees, up from 16.7 degrees last January.
Wholesale electricity costs are paid by utility companies and electricity distributors. Consumers’ electric bills contain additional charges.
