the US had volatile wholesale electricity prices at major trading hubs in the United States rose throughout much of 2022 and were, at times,
increased in the electricity generation fuel mix during the heatwave, resulting in higher electricity prices. In the CAISO region, the grid operator for California, the wholesale electricity price averaged $134/MWh that month.
4. Cold weather and winter storms throughout December in the Western Pacific regions of the United States led to record-high electricity prices in December at the Northwest Mid-Columbia market hub and at the CAISO N-15 hub . Colder weather increased electricity demand, which increased natural gas-fired generation. The cold weather, along with supply constraints, causedin the western hubs to rise to about 10 times those at Henry Hub, the national benchmark price.
The natural gas price is a significant driver of wholesale electricity prices because natural gas is often the highest-cost fuel for electricity generation, setting prices for the hours that natural gas-fired generators run. In January 2022, natural gas prices continued an upward trend driven by economic
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