March 2024 Freedom Energy Newsletter

New England Futures Electricity Prices Summary

Howard Plante discusses the significant drop in the 2024 calendar year electricity price to a 24-month low of 4.99 cents per kWh, highlighting the influence of declining natural gas prices and mild weather on electricity price trends for 2024, 2025, and 2026.

Published: March 21, 2024

At the end of December 2023, the 2024 calendar year electricity price dropped to just under 5 cents per kWh hitting a 24-month low of 4.99 cents. At the end of 2022, the same 2024 strip was trading at 8.85 cents per kWh.  While the 2024 strip price was declining in the fourth quarter of 2023, the 2025 and 2026 prices fell by the end of the year to 20-month lows at 5.7 and 5.6 cents respectively. Table 1 depicts the electricity price trends for 2024, 2025 and 2026 updated through December 29, throughout the past 4 years.

Table 1 – 2024 – 2025 – 2026


As we entered 2024, the 2025, 2026 and 2027 strip prices ticked up two weeks in a row, then started a decline for nearly 5 weeks to a low of approximately 5.4 cents. Price drops were indicative of the declining natural gas prices driven by mild weather and favorable natural gas storage reports. In mid-February natural gas prices rebounded and the electricity strips followed suit through March 8, however still trading at 2-year lows. Table 2 depicts the electricity price trends for 2025, 2026 and 2027 updated through March 8, 2024 for the past 4 years.

Table 2 – 2025 – 2026 – 2027


Key Influences: Analyzing Factors Behind the Declining Prices


Table 3 helps to portray the continued influence natural gas prices have on electricity prices in New England. When the 2024 natural gas price started a steep decline at the beginning of November 2023 continuing through the end of the year, the electricity strip for 2024 reacted accordingly.

Very favorable natural gas storage levels throughout the winter were partly a result of the mild weather. Storage levels have remained above the 5-year average since January 2023 and are now well above the 5-year maximum. Table 4 depicts the 5-year rolling storage level for the past two years as of March 1, 2024.

Table 3 – Electricity – Natural Gas Price Relationship

Table 4 – Natural Gas Storage as of March 1, 2024

Note: Electricity prices referenced here are energy-only and do not reflect a total electricity supply price that includes capacity, ancillaries, RECs, etc.

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Meet the Writer

Howard Plante
Freedom Energy Logistics
Vice President of Procurement

Howard Plante is a seasoned professional in the energy industry with a comprehensive background in environmental and energy engineering. As Vice President of Procurement at Freedom Energy Logistics, he brings a wealth of experience in regulatory compliance, technical analysis, and strategic planning to his role, where he is dedicated to advocating for clients and advancing the company’s enterprise efforts on their behalf. Click here to read Howard’s full bio.

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