Low Prices Continue -- The Beacon, 12/14/2020

The Headline:   Natural Gas prices rose slightly last week, pulling wholesale electricity prices up as well.   Prices are still low, however, with the 12-month price holding below $2.70 – with the low rig counts adding risk of high prices in the spring, we may still be lower than anything we will see in the next several months.  Now is the time to lock in your electricity and natural gas rates and save money.  

The Bottom Line:    Natural gas prices through early 2022 rose slightly last week – that will pull electricity prices up, as well.   Drilling rig numbers continue to grow, but are still very low – roughly 48% of pre-COVID numbers.   That leaves these low short-term prices vulnerable to weather concerns – when storage levels get low as they do every winter, prices are likely to go up and spike.   We are advising our customers to lock in both electricity and gas rates right away.    

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