Natural gas & Electric Prices Trends In Review
Energy prices not only increased in 2025; they reset to a higher level.
- Natural gas: very low in 2024 → 50% – 60% higher in 2025 → expected to stay elevated in 2026 with late year 2026 surge up in prices forecasted.
- Electric power: up approximately 40% in 2025 vs. 2024 → additional upward pressure in 2026 as power prices are highly influenced by natural gas price trends
Why January Is Critical
January is when updated kW demand numbers become available for electric consumers. These KW demand volumes are set based on the electric consumption during the 5 peak hours in the summer of 2025.
Knowing these new KW demand volumes allows RD Energy to calculate how much higher or lower PJM capacity costs will affect your electric supply spend starting June 2026, and compare it directly to what you’re paying in the current PJM year.
What Changed Under the Hood
PJM Capacity — the cost of keeping power available during peak conditions — used to be small.
Now it’s a major driver of supplier pricing for every Ohio consumer. The charts included helps to demonstrate the increase in capacity costs from 4% to 50% of the total supply price.
Simple analogy:
You didn’t order more electricity — the “reservation fee” to keep electric available at peak times in the summer and winter went way up.
Why Waiting to Take Action Hurts Your Energy Spend
You can’t change KW demand for last summer — but you can influence next summer’s KW demand and the years after.
Customers acting now are:
- Reviewing January demand exposure
- Managing peak usage – we talk with your operation s team to figure out what’s possible – 25%, 50%, 75% KW demand reductions saves critical dollars
- Exploring Demand Response – the sign up window is open now until around April 30th, but space is limited
- Planning across multiple PJM years, not just one