On Rate Hikes and Price Spikes

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“[E]lectricity rates — which jumped as much as 37 percent — were based on projections that prices in wholesale markets would surge toward last winter’s record levels. Average wholesale electricity prices, however, are running at about half of last year’s … Power producers expected similar conditions this winter and raised prices significantly when utilities contracted for winter supplies in the fall. But shipments of liquefied natural gas, or LNG, into the region have dramatically increased this winter, and at prices 50 percent lower than last winter. The change has prevented natural gas shortages caused by pipeline constraints and moderated fuel prices.” — Boston Globe, February 25, 2015

Perhaps another factor in the increased LNG imports:  ISO New England chose not to exclude LNG from this year’s Winter Reliability Program, unlike last year.  Read more in Commonwealth Magazine and from Reuters – “As New England freezes, natural gas stays cheap.”)