Politics on the Hudson

Prices for wholesale electricity fell to their lowest levels last month since 2002, the organization that runs the market announced today.

The average price in April was $39.64 per megawatt hour, 13 percent lower than March and just a little more than half as much as the $73.28 cost in January, according to the Independent System Operator.

“This is good news for consumers and further evidence that New York’s competitive markets are working as planned,’’ said ISO chief Stephen Whitley.

The cost is down because the price of natural gas, which powers many plants, has dropped by more than half since january and, Whitley said, because plants are becoming more efficient.

The ISO’s system of buying electricity from producers – paying all producers the same price, rather than accepting lower bids – has been attacked by Assemblyman Richard Brodsky, D-Geenburgh, and others, who think those who bid lower should be paid less. But the ISO claims its system pushes all producers to be more efficient.

Prices to homeowners and other retail customers haven’t dropped by nearly as much, since transmission, distribution and other costs account for more than half of the typical total electric bill, which in New York remains among the most expensive in the country.