Every business, resident, and public entity in New England cumulatively spent $1.5 billion less on electricity in 2012 to the lowest levels in 10 years, according to regional power grid administrator ISO New England.
ISO found wholesale electricity prices fell 23 percent in 2012 as the price of natural gas dropped the over cost of power while energy efficiency measures in the six New England states led to higher conservation, decreasing demand.
The total amount paid by the region was $5.2 billion in 2012, down from $6.7 billion. The 2012 expense was the lowest level since ISO introduced the wholesale markets in their current form in 2003, when the regional power expense was $5.6 billion.
Last year was in stark contrast to 2008, when the region paid a record high $12.1 billion due as the natural gas prices soared to historic highs. New England’s electricity expenditure plummeted by more than half in the past five years largely on the dropping price of natural gas, which has been influenced by the increase in the domestic supply of the commodity.
Natural gas is the predominant fuel used to generate New England’s electricity, and the average price of natural gas fell 20 percent in 2012 to its lowest level in 10 years.
Demand for electricity decreased 1 percent in 2012, due to increasing energy-efficiency measures, milder weather, and the lingering impacts of the economic downturn.
