Wholesale Electricity Prices Going Down in New England
There is some good news and some bad news in this story. First, the good news. New England’s power grid operator says wholesale electricity prices dropped by nearly 23 % regionally last year. 23%! Electricity prices are now at their lowest levels since 2003.
There were a couple of big reasons for that drop, including the decrease in natural gas prices and decreased demand. However, the lower wholesale prices don’t necessarily mean quick drops in monthly power bills. This is the bad news part. Utility regulators in our states set retail rates in advance. Those deals are in place for blocks of time that range from months to years. So, we as the consumers, the payer of the bills, see a delay between the drop in wholesale and retail prices.