New England Wholesale Electricity Hits All-Time Record in January 2026
ISO-NE experienced its highest monthly energy costs in history during January 2026. A prolonged deep freeze pushed natural gas prices to levels not seen since 2003, driving wholesale electricity prices to $441.80/MWh on peak days—a 227% increase over the January 2025 average of $135.08/MWh. February 2026 prices have moderated to $146-$226/MWh but remain elevated.
Key Data Points
What Happened
A prolonged cold snap beginning January 25 triggered ISO-NE's Master/Local Control Center Procedure #2 (M/LCC 2), which remained in effect through February 11—an unusually extended duration.
Natural gas, which fuels approximately 55% of New England's electricity generation, reached its highest price since 2003 due to pipeline constraints and surging heating demand. The constrained Algonquin Citygate pipeline was the primary bottleneck.
February pricing has moderated but remains elevated. The week of February 2-5 averaged $226/MWh DA, while the week of February 9-12 eased to $146/MWh DA. Real-time prices exceeded $330/MWh during peak demand periods and hit $315/MWh on February 9.
Zone Price Separation
Binding transmission constraints caused significant price separation across load zones:
Commercial Impact
What This Means for Buyers
- →Variable-rate customers in CT, MA, and RI will see January bills 2-3x higher than typical winter months.
- →Fixed-rate contracts renewing in 2026 will carry a winter risk premium of 15-25% above 2025 levels.
- →Peak Load Contribution (PLC) values will reset based on this winter's coincident peaks, increasing capacity charges for 2027.
Lock In Before Summer
If you're on a variable rate or your contract renews in 2026, now is the time to benchmark your options.
Sources: ISO-NE Weekly Market Summary (Feb 2-5, Feb 9-12 2026), ISO Newswire, RTO Insider, The Maine Wire. All pricing data from official ISO-NE market reports.