What Moves the Electric Market?

In New England, there are two main drivers of wholesale electricity prices – cost of fuel and demand. 

Cost of Fuel

Natural gas is the principal fuel source used to produce electricity. Natural Gas has made up 52% of the electricity used in New England this past year. As a result, average wholesale electricity prices are closely linked to natural gas prices.


The weather plays a significant role in energy demand. You may hear us refer to heating and cooling demand depending on the season. In the summer, electricity for air conditioning increases signifigantly. Winter brings along heating season and an increase in demand for natural gas.

It is important to note that there are other factors play a role on the electric market such as government policies and regulations, infrastructure and transmission costs, region and more.

As always, contact your Energy Advisor to learn more.

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