The US Federal Energy Regulatory Commission’s Summer 2005 Energy Price Review report notes a growing difference between prices in the PJM Mid-Atlantic area compared to New England and warns that winter power prices may be much higher than last year.
The price difference may reflect regional concerns about deliverability of natural gas through the winter, said the report, adding that power prices in the Northeast will be driven more by natural gas prices than by availability of generation.
Wholesale electricity prices have been significantly higher this year, compared to 2004, especially in the East which experienced more hot weather and which uses more oil and natural gas for generation.