December 2025 – February 2026 is registering as the coldest winter in ISO-NE since 2014. Between 1/25 – 2/7, New England’s power system experienced its most challenging operating conditions since the winter of 2017/18. Due to the extremely cold temperatures, ISO- NE experienced record high energy prices in terms of – Energy (LMP), Fuel Prices (Gas Prices) and Reserve Prices (DASI). These are the highest energy prices ever experienced in ISO-NE since markets began in 2000. The week of 1/25-1/31 averaged $441 LMP at Mass Hub, the previous record high week was $299 DA LMP Energy set in 2014.
Below are two tables that compare the On-Peak & Off-Peak Day-Ahead LMP at Mass Hub compared to 2024 and 2025.
Month | Average DA Pk Price | % Change from 2025 | % Change from 2024 | 2025 Price | 2024 Price |
Dec | $145.47 | 38% | 69% | $90.76 | $45.58 |
Jan | $187.54 | 21% | 59% | $147.42 | $77.44 |
Feb | $154.04 | 15% | 75% | $131.17 | $38.76 |
Average | $162.35 | 25% | 67% | $123.12 | $53.93 |
The largest reason for the cost increase is due to high natural gas prices and the amount of OIL generation used during each winter. Oil and dual-fuel generation increased materially during January 2026, accounting for up to 44% of total generation in parts of the Northeast during periods of peak system stress. The cold weather during winter of 2026 also affected neighboring regions, further straining fuel supplies and limiting New England’s ability to import electricity.
These factors, higher natural gas prices, significantly more high-priced oil generation, and limited imports are the primary drivers of the energy cost increases felt in 2026.