Wholesale Electric Prices Hit 10-Year High

In Feburary, the prices for natural gas in New England hit a 10-year-high, which elevated wholesale electricity prices to more than triple last year, according to an article in the Worcester Business Journal.

With information supplied by grid administrator ISO New England, WBJ said that cold weather and high demand for gas, as well as constraints in the pipelines to deliver it, increased the price. Many of New England's power plants use natural gas, which in turn drives up the price of wholesale electricity.

While wholesale prices have gone up, WBJ said that it does not directly impact the bill of the ratepayer.

In fact, SELCO spokesperson Jackie Pratt reiterated to Patch that SELCO (Shrewsbury Electric Company) just reduced its rates in March, and "remain among the lowest in Massachusetts."

In a press release, SELCO stated, "SELCO is reducing residential electric rates for all bills issued as of March 1, 2013. Residential customers can expect monthly bills to decrease by approximately 4% as a result of the rate change. The Residential electric rate will drop from $0.1177/kWh to $0.1127/kWh. The Residential monthly minimum customer charge will remain $2.90/mo. Based on recommendations from an expert electric industry consulting firm, SELCO is also realigning the cost attributed to each bill component to better reflect the true cost of each component of the bill by rate class."