RENSSELAER, N.Y. (AP) — New York's electrical grid operator says the average price of wholesale electricity hit a 12-year low last year, thanks to a glut of cheap natural gas and market competition that drives greater efficiency.
The New York Independent System Operator, or NYISO, said Wednesday that the average annual wholesale price of electric energy in the state was $45.23 per megawatt hour. The previous record low was $48.63 in 2009.
The average annual wholesale price in New England was $36.09 per megawatt hour last year, a 10-year low.
The lower wholesale prices don't necessarily mean quick drops in monthly bills for consumers because utility regulators set retail rates in advance. Consumer electric bills also include the cost of distributing the power across the grid, which may offset fuel cost savings.
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