HARTFORD — The retirement of several power plants in New England is reducing power supply and driving up prices, the region’s electric grid operator warned Wednesday.
A regional auction to buy power for 2017 and 2018 in so-called capacity markets — comparable to an insurance policy that ensures power is available in the future — ended with a shortfall in megawatts for electricity used by businesses and homes, ISO-New England said.
In the auction that ended Monday, ISO secured a commitment of 33,700 megawatts, off from 33,855 megawatts of capacity required. One megawatt powers about 1,000 homes.
The deficit in megawatts available is a first for New England, which has had a surplus in megawatt capacity since the forward capacity market was established in 2006. Full story for BostonGlobe.com subscribers.