For this seven-day report period, the 12-month average price for natural gas on the NYMEX fell 2.6% and the 12-month average price for peak power on the PJM fell 1.7%.
Natural gas and electricity prices continue to trade at a ten-year low because supplies are high and demand is low. Natural gas supplies are unusually high thanks to the shale gas discoveries. On the other hand, energy demand is unusually low due to one of the warmest winters on record. Even March was warmer than normal. In fact, March 2012 was the warmest March on record for Washington, D.C.
It is very hard to know if this is the bottom. Looking forward, summer temperatures and hurricanes are two big variables that can impact the future direction of energy prices.