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Electricity and Natural Gas Prices Have Increased
This winter has been extremely challenging for energy markets. Energy prices have been more volatile than we have seen in several years. Record cold temperatures and natural gas storage withdrawals coupled with coal plant outages have put increasing pressure on electricity prices. Hourly electricity prices in the Northeast United States have at times exceeded $0.60 per kWh.
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12-Month Forward Strip Chart
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Forward year electricity prices are above current contracted prices
Given the significant natural gas storage inventory deficit versus the five year average inventory position, a key question is whether natural gas inventories will be replenished for next winter. If we experience hot summer weather prices may increase substantially.
- Clients that fixed electricity prices going into the 2013/14 winter should expect higher prices in future years.
- Clients with market based agreements should consider fixing all or a portion of requirements.
It is important for customers to be ready to act given the price uncertainty
We are engaged in the energy markets every day, and we want to help you be proactive as we work towards your next contract. We expect buying opportunities to emerge as we come out of the winter. We urge you to engage with us now so you will be ready to act when the next opportunity emerges.
Contact your Energy Advisor today 1-888-686-4845.
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