For the third week in a row, natural gas and electricity prices were relatively flat. For this seven day report period, the 12 month average price for natural gas on the NYMEX rose less than 1%, and the 12 month average price for peak power on the PJM fell less than 1%.
The early onset of cold and snowy weather in the North East tried to place some upward pressure on natural gas and electricity prices. However, this upward price swing was easily squashed once the weather forecasters announced that temperatures over the next 8-14 days were expected to be warmer than normal east of the Mississippi.
Although the months ahead are winter and normally translate into increased demand for energy, no one is panicking. For now, natural gas supplies are high and energy demand is still low. Natural gas prices are hovering at an eight year low and electricity prices are hovering near a seven year low. Prices are very attractive at this time. How much lower can prices go? This is a good time to look at the early renewal strategy.