In 2016, wholesale electricity prices in New England dropped to their lowest level in 13 years!
According to ISO-NE (the organization that operates New England’s electric grid), mild weather and low gas prices helped push down wholesale electricity prices last year in New England.
If you didn’t notice this on your electricity bill, you’re not the only one.
Simply put, the electricity bill you pay every month includes additional charges beyond the wholesale cost of producing the power. Fees for things like transmission, distribution and energy efficiency are added by the local utility.
So, while the wholesale portion dropped by some 20 percent during the last decade in New England, the total bill rose by about 14 percent.
Proponents of the Access Northeast pipeline want to add the cost of the pipeline to your electric bill as part of the fees you pay for transmission and distribution. They say we need the gas to keep prices down and ensure reliability. Both of these claims have been debunked by independent studies:
Tell us again why we should be building new gas pipelines?
Consumers for Sensible Energy
Consumers for Sensible Energy works on behalf of consumers by promoting responsible energy policies that assure adequate energy supplies at fair prices.
We have joined with like-minded organizations (Allies) in the fight against the proposed natural gas pipeline in the Northeast because of their impact on consumers. In fact, in these proposals consumers would get socked twice: once for the $6.6 billion cost of construction, operations and maintenance, depreciation expenses, and return on equity, and a second time for the cost of the gas on the global market…which experts predict will raise the prices of gas at home, once gas is exported to other countries. It is, in effect, a pipeline fee on monthly electric bills.