The Regional Transmission Organization (RTO) named PJM released their first Capacity rate auction results in nearly two years on July 30th and it was a shocker.  The announcement was that the PJM capacity auction rate for the June 1, 2025 – May 31, 2026 PJM year will be 269.92/MWD up from the current $29.82/MWD or

Short-Term Key Drivers  How hot will the summer months be in the U.S. – how much extra natural gas will be consumed in power generation? Does U.S. daily natural gas production keep increasing from lower levels seen in May? U.S. natural gas storage levels continues to be well above the past 5 year average year

Key Drivers Daily U.S. natural gas production cut back Above average U.S. natural gas storage levels Technical Trader short-squeeze Early start to warmer summer Electric growth from micro chip plants and data centers 40% jump in LNG export capacity in early 2025 Commentary The natural gas and electric wholesale markets is ripe for price volatility

Key Drivers Natural Gas storage is 655 bcf higher than the past 5 year average U.S. natural gas producers have reduced supplies to retail market to slow the slide in well-head prices Approaching AC season and forecasted hotter than normal summer likely to bolster prices of NG and electric Future NG and electric growth forecasted

Key Drivers Extremely mild winter Extraordinarily high natural gas storage levels Reduction of daily natural gas production by U.S. producers Fears of higher natural gas domestic and global demand in early 2025 Fears of PJM peak day delivery short-fall Commentary Many of our clients fixed new electric and natural gas agreements in 2021 prior to

In lieu of our normal monthly newsletter we thought we would try and help answer two ongoing business consumer energy questions: Why are energy prices higher than when we last fixed our electric and natural gas contracts a few years ago? When should business consumers look at renewing their energy contracts?   Wholesale natural gas