- Electricity prices in New England could be volatile this winter, the Federal Energy Regulatory Commission said Thursday when it unveiled its Winter 2013-2014 Energy Market Assessment.
- The reason is that power prices in the region closely track natural gas prices and the gas distribution system has ongoing pipeline constraints.
- For the rest of the nation, "market conditions going into the winter are generally positive for natural gas and electricity markets," FERC said.
Power prices in New England also spiked at times last winter, FERC said, because natural gas is the "marginal price-setting fuel during most hours of generation." The region still suffers from a lack of adequate transmission that could help ameliorate wild swings in power prices.