Energy Market Update—Are Price Increases on the Way?

Jonathan Lee

Ever wish you could go back in time? When it comes to energy pricing, you virtually can! Right now, energy prices are as low as we’ve seen them since 2012 but increases may be on the way. So how can companies survive the ups and downs of the industry and take advantage of prices when they’re low?

Ecova recently addressed that question in our recent webinar, “Energy Outlook, Q2 Market Intelligence Update.” In case you missed it, here are a few of the most important takeaways:

  1. Natural gas & wholesale electricity are near their lowest since ’12
    Energy prices are likely to rise in Q3 2015 as the supply and demand picture balances.
  2. Power sector demand for natural gas is set to increase
    With around 14,000 MW of coal-plant retirements scheduled for 2015, gas-fired generation will continue to grow and potentially introduce more volatility.
  3. Regional Electric Outlook
    West: California wholesale electric prices have a very strong correlation to natural gas. Thus, if natural gas costs move higher throughout the year, California electric prices will as well.Texas: Due to summer volatility in Texas, the current level of forward pricing offers a great opportunity to lower costs and create budget certainty.Midwest: The impact of increased capacity prices can be reduced if blended over multiple planning years. Current low energy prices may also support a longer-term approach.Northeast/New England: Winter volatility will likely continue until new pipeline capacity comes online. Prepare well in advance by monitoring the market for buying opportunities.

It may be summer, but price increases may be right around the corner. We encourage you to get informed and prepared by viewing the webinar recording below. Our new Energy Price hub is also great resource to help you stay informed and get the latest updates on energy prices and market intelligence.

Related resources:

 

The information in this page is offered only for general informational and educational purposes. It is not offered as and does not constitute legal advice.

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