In light of the recent arctic blast covered much of the middle Atlantic and northeast the past couple of weeks, natural gas and spot market power prices have risen. That said, continued increased output from natural gas producers is leading the charge towards brining those prices back down as the extreme cold recedes a bit this week. Additionally with the increased production the month of January 2018 NYMEX gas settled 30% below one year ago. End-users should remain optimistic that gas prices are expected to fall back to around the $2.50 – $2.75 levels over the next month.
Anyone adversely impacted by high power prices in the New York and New England markets should remember that there are many regulatory issues also going on in this market and most experts, along with ERC’s own opinion, do not suggest locking into high prices at this time. Instead most analysts suggest waiting things out in the northeast for improved gas pipeline expansion projects and hopefully some relief to hourly electric prices.