New Brattle Report Evaluates Electricity Price Volatility in Maine and Highlights Mitigation Solutions

The Maine Department of Energy Resources engaged Brattle to analyze the primary drivers of electricity price volatility in Maine and to identify solutions for mitigating their impacts.

Brattle’s analysis finds that volatility in natural gas commodity prices is the primary driver of recent electricity price spikes, with storm-related costs, aging infrastructure, and inflationary pressures also contributing to rising rates. Looking ahead, expanded US liquefied natural gas (LNG) exports and rapid growth in data center demand are poised to put additional upward pressure on natural gas and electricity prices. The report finds that Maine can mitigate long-term cost and risk exposure by accelerating clean energy development, investing in load flexibility and energy efficiency, and strategically electrifying end uses that currently rely on fossil fuels.

The full report, Factors Driving Electricity Prices in Maine, can be found on the Maine Department of Energy Resources website and below.