Wholesale power prices in New England rose more than 10-fold for a while on Christmas Eve, apparently because an unnamed power plant stopped producing as much as expected and we couldn’t import as much electricity from New York and Canada – presumably because they needed it during the cold snap.
State Consumer Advocate Don Kreis wrote about the situation in his InDepthNH column – check it out here. ISO-New England has their own take here, including this:
Underperforming resources will be penalized at a rate of $3,500 per megawatt-hour (MWh) for failing to meet their obligation during the capacity scarcity conditions, while resources that over-performed (including resources with no obligation) will receive $3,500/MWh of additional revenue. Penalties for the Christmas Eve event are estimated to be approximately $39 million, based on initial data. Charges for underperformance are paid by the underperforming resources, not electricity ratepayers.
Solar panels on our roofs and batteries in our basements. Its time. Works for us.
But wasn’t demand very low, due to at least 10% of NH being without power due to the storm?
Demand was certainly erratic, but cold weather raises demand from places that weren’t out of power so it’s hard to know.