Welcome to the September 2024 newsletter.  The wholesale electric and natural gas markets are facing a number of earthquakes sure to shake up energy prices over the next few years.  To write everything we wanted to say would lead to a very lengthy newsletter.  So we’ve decided to test our podcast version alone hoping that anyone really interested in getting informed and learning about the approaching energy earthquakes will listen to what we feel is an easier way to get a more clear picture.  We’d like to say using the words; earthquake, tsunami and impact are just hyperbole to get you to listen, but the fact is businesses of all sizes, schools and municipal communities need to be in formed now so they can be informed and take action rather than stand in wonder of “what is happening” and wishing that they had taken notice and acted as the flood of higher electric and natural gas costs wash over them.    

We truly feel that the information this month is critically important energy consumers, since it’s not likely you will hear this level of detail from energy suppliers themselves any time soon.  Their legal teams are already exploring “change of law” clauses in electric contracts as the jump in PJM capacity costs beginning June 2025 was not expected to be nearly 10x higher than current PJM capacity costs.   In the podcast we explore a number of very important things that could be earthquakes to energy consumers and the prices they pay:

1. PJM capacity costs is going up 10X for the June 2025 – May 2026 year, but is this only the beginning of higher capacity prices and will they even go higher?
2. If PJM is saying that power generation available is lacking what they forecast is needed during a critical high usage event now, what will happen when Intel, Microsoft, Google, Amazon and others adds massive electric demand over the next few years?
3. Natural gas LNG export capacity growth will increase from 14 bcf/day to approximately 22 bcf/day by the end of 2028 and possibly double by the end of 2028.
4. After 2 of the warmest winters in 50 – 100 years will this winter featuring the La Nino weather condition be more normal with some Polar Vortex possibilities?
5. Will Europe and Asia the home for U.S. LNG exports have a colder winter this year, since they too had back to back very warm winters?

Please allocate some time to listen to this unique information we don’t believe you will hear elsewhere.  As a RD Energy client we want you to be informed so we can discuss options to lower the impact of higher electric and natural gas costs.  If you are not yet a RD Energy client, we recommend listening to the podcast and becoming one.  Thank you in advance for listening.  Please call or email us if you have questions