February 2025 was a challenging month for electricity bills in New England, with soaring costs that significantly impacted household and business budgets. According to ISO-New England, the average real-time electricity price was $126.40 per megawatt-hour in February, representing a 301% increase compared to February 2024. January’s real-time price average was only 6.4% lower than February’s elevated average.
The drivers of wholesale electricity prices in New England are consumer demand and fuel costs, both of which have increased. Natural gas was used to generate 55% of the power produced in 2024, with the average natural gas price per therm in February being $14.62, up 319% from the February 2024 average. Regional electricity demand in February increased 4.7% compared to February 2024, with the average temperature in February being 29 degrees, down 5 degrees from last February.
The region’s energy mix remains carbon-intensive, with natural gas-fired and nuclear generation producing 79% of the electric energy generated in February. Renewable sources generated 13%, including 5.4% from wood, refuse, and landfill gas, 4.7% from wind, and 2.9% from solar. However, the region continues to emit significant levels of CO2, with New England power plants producing 2.28 million metric tons of CO2 in February 2025, a 10.3% increase from February 2024.
The issue of energy affordability is becoming increasingly important, with legislative efforts underway to address the issue. Governor Maura Healey’s team is working on a proposal to be put before the General Court, while Democrats on Beacon Hill have been supporting offshore wind power’s growth, although the industry has been slow to develop. As the region continues to transition towards a more renewable energy mix, addressing the affordability and efficiency of the energy system will be crucial.