Fossil-Fueled Rates: How Gas Costs are Causing New England’s Electricity Price Spikes, and How Electrification Will Help Protect Customers in the Future
This report investigates the impact on electricity prices in New England from the combination of three factors. They are the (1) region’s substantial dependence on natural gas as a fuel in its power plants, (2) way wholesale electricity prices are determined in real time via an auction-style bidding mechanism that occurs every five minutes of the day, and (3) consequences of volatility in the price of natural gas.