As we’ve reported here a number of times, July-August day ahead markets in the Northeast have been extremely low over the past several years. This trend continues through July 2015.

As quoted from the NYISO’s July 2015 Market Performance report:

Market Performance Highlights for July 2015 • LBMP for July is $34.78/MWh; higher than $28.19/MWh in June 2015 and lower than $43.97/MWh in July 2014.

– Day Ahead and Real Time Load Weighted LBMPs are higher compared to June. – This is the lowest LBMP for the month of July during NYISO operation. • July 2015 average year-to-date monthly cost of $52.76/MWh is a 41% decrease from $89.46/MWh in July 2014.

It is worth underscoring that July 2015 was the lowest day ahead (locational based marginal pricing – LBMP) pricing in the history of NYISO operation.

The following graph shows how day ahead (LBMP) pricing year-to-date through July 2015 compares to 2014. While there is volatility, particularly in Winter months, we are in a period of relatively low index costs.

Bottom line for businesses: Day ahead and forward prices, while periodically volatile, are relatively low. Put all historical and forecast costs in context when evaluating purchasing strategies.