As we mentioned in this week’s Energy News Flash the price of electricity on the Day Ahead Market has risen greatly as we continue to experience the coldest temperatures of the season thus far. Last week we saw Day Ahead electricity prices in the Northeast rise above $200 MWH. We did not see January prices rise as high as last year; however, February looks like it may be a different story as more bitter cold temperatures are forecasted and the Day Ahead Markets are awake and reacting. For those of you on variable or index pricing be prepared for higher prices in February.
Check out our graph to see the correlation between the average daily temperature and the Day Ahead Market pricing in the various regions.