Your electric bill is going up next year. Here's why. | newscentermaine.com
Of course, our experts, Philip Bartlett, PUC Commission Chair and Heather Sanborn, Office of the Public Advocate, know why.
“Unfortunately, natural gas prices have gone up substantially, which is driving up electricity prices,” Bartlett said.
"Unfortunately, there is not much Maine can do to urge electricity rates lower, Sanborn said. The state needs to rely less on natural gas to avoid the volatile pricing that comes with fossil fuel. She said the solution lies in other energy sources."
“The less we are dependent on both natural gas prices and oil prices, the more we can have some predictability and stability in our electricity prices going forward,” Sanborn said.
OK, if it is natural gas, why is it natural gas?
ISO-NE says:
"While Henry and Marcellus hub natural gas prices remained low, at times, New England gas prices rose above hub prices even in relatively mild winter conditions. Quarter 1 and Quarter 4 gas prices averaged over $4/MMBtu, more than $2/MMBtu over hub prices during the winter. Daily gas prices exceeded $10/MMBtu on 22 days in the January and December 2024. "
"The EIA forecasts increasing gas prices over the next few years, with Henry hub natural gas price projections at $3.10/MMBtu in 2025 and $4.00/MMBtu in 2026.24 Demand growth, primarily driven by LNG exports, is expected to outpace supply growth. Future New England prices will likely continue to reflect both hub prices and winter pipeline constraints, with increasing emission prices further contribute to gas generation costs. "
Why is the price of natural gas so much higher in New England?
ISO-NE says:
"With limited options for storing natural gas, most natural-gas-fired plants rely on just-in-time fuel delivered to New England through interstate pipelines. However, interstate pipeline infrastructure has only expanded incrementally over the last several decades, even as reliance on natural gas for home heating and for power generation has grown significantly. During cold weather, most natural gas is committed to local utilities for residential, commercial, and industrial heating. As a result, during severe winter weather many power plants in New England cannot obtain fuel to generate electricity. Liquefied natural gas (LNG), brought to New England by ship from overseas, can help fill the gap—but regional LNG storage and sendout capability is limited, and its timely arrival depends on long-term weather forecasts, global market prices, and other logistical challenges."
To which Massachusetts Governor Maura Healey says:
Maura Healey, April 2022, publicly stated that she had "stopped two gas pipelines from coming into this state". The claim is captured on video.
What about carbon allowance costs?
ISO-NE says:
"Estimation of CO2 Emission Programs Impact on LMP and Other Market Outcomes In 2024, carbon allowance costs accounted for a larger share of total fossil fuel generation costs than in prior years. To evaluate their impact on energy prices, we simulated the day-ahead energy market and estimated that CO₂ programs added approximately $8/MWh to the average annual energy price on a load-weighted basis—representing 18% of the $44/MWh average LMP. In total, these programs contributed just over $910 million to wholesale energy costs, or 19% of the $5.6 billion annual total. "
Talk about "dirty tricks" Does Newscenter 6 have any idea how and how much Maine's Renewable Portfolio Standard increases supply rates?
Standard offer providers (SOP) as well as the more expensive competitive electricity suppliers (CES) are obligated to provide Maine with a portfolio that is 65% renewables. Obviously depending on wind and solar to provide 65% of Maine's electricity would mean mass blackouts, especially this time of year.
So, the SOP and CES, the companies charging what we pay on the supply portion of bills must
somehow buy 65% renewables and that is done by buying paper certificates from renewable generators which can be as much as 5 cents per kilowatt hour. At the same time, SOP and CES must purchase enough reliable power from the New England wholesale market, a market dominated by the large consuming Southern New England States, to assure there is adequate power to keep the lights on in Maine.
Isn't it rather perverse that Maine people must pay for useless paper to have electricity delivered to their homes, Newscenter6?
I wish we had people in Augusta and Newscenter 6 would research rather than mimicking each other.
I wish we had people in Augusta and Newscenter 6 would research rather than mimicking each other.
by Dan McKay
18 hours ago
"Unfortunately, there is not much Maine can do to urge electricity rates lower, Sanborn said. The state needs to rely less on natural gas to avoid the volatile pricing that comes with fossil fuel. She said the solution lies in other energy sources."
“The less we are dependent on both natural gas prices and oil prices, the more we can have some predictability and stability in our electricity prices going forward,” Sanborn said.
OK, if it is natural gas, why is it natural gas?
ISO-NE says: