Intuitively speaking, one might think 1200 megawatts of solid hydro-powered electricity could help reduce wholesale electric prices, especially when natural gas-fired plants are stretched to the max.
A review of Friday's and Saturday's wholesale market data as displayed on the ISO-NE Express Website confirms that the excessive demand brought on by the oppressive heat of the past two days sent the price of electricity up by 36%, Saturday and up 42% on Friday as the last 1200 megawatts was brought to market.
At 11:00 am on Friday, the wholesale price was #132.29 per megawatt-hour. The addition of 1200 megawatts 5 hours later sent prices to $186.66 per megawatt-hour.
Saturday, prices went from $114.86 to $156.16 per megawatt-hour to get 1200 additional megawatts needed for peak loads.
NECEC offered 1200 megawatts of solid power at 24/7/365. Massachusetts offered to pay for it prior to entering it into the wholesale market, meaning, as a price taker, the wholesale price would scale back to peaks of $132.29 and $114.86 in this example.
What a difference in NECEC price suppression when the market prices soar because of poor energy policies. Did Nextera and Calpine, as natural gas and oil plant owners, know this was coming when they fought against NECEC? Did the unfortunate public know this was coming when they voted against NECEC?