High Power Prices – Why?

The Market Watch page is available to help you better understand the factors that affect electricity pricing. The following information can help you better navigate price fluctuations throughout the year.

Winter 2014 – Variable Rates Are At All-Time Highs

Due to energy market conditions beyond our control, the wholesale price for electricity has increased substantially during the months of December, January and February 2014. Winter prices are generally high, but 2014 has seen unusually high prices in the area.  This cost increase has and will continue to affect all customers who are on a month-to-month variable pricing model.

Cold Weather and Natural Gas

Electricity pricing is driven by Natural Gas prices and availability. In the charts below you can see the direct correlation between the wholesale price of Natural Gas and the wholesale price of Electricity. As a result, you can see the direct relationship these prices have on Town Square’s Variable Rate prices, also seen in the chart below.


In the chart above, limited supply, delivery constraints, and cold weather resulted in rapid natural gas price increases beginning in late November.


High natural gas prices and weather-driven electricity demand causes power prices to increase dramatically as we enter winter.  The chart above is representative of the underlying cost of the energy customers in New England are receiving.


Compare these charts with our variable rate page, and you’ll see why we’ve been recommending to our customers that they exit their variable rate as soon as possible. For more information about our variable rates, please visit our Variable Rate page. You will find useful information on electricity pricing, as well as our 90 day variable-rate forecast.