The average price for wholesale power for May in New England dropped to the fourth-lowest monthly price in 12 years, according to regional electric grid administrator ISO New England.
The $26.12 per megawatt hour paid for May was only higher than the $25.88 paid in April, the $25.41 paid in April 2012, and the $25.39 paid in March 2012.
The wholesale power prices benefitted from the lowest monthly price since 2003 for natural gas – which generates more than half of New England electricity – that more than offset the warm weather for the month, which increased demand particularly for air conditioners.
Wholesale power prices are just one aspect that make up what ratepayers ultimately pay to their utilities. While wholesale provides a base, other factors like transmission, distribution, taxes, government fees, and ratepayers’ supply contacts influence the retail price.
