Capacity costs are climbing fast in PJM, while heat continues to drive strong energy demand. The latest Base Residual Capacity Auction began on June 30, and recent results reflect a major increase in grid costs. Natural gas prices have also edged higher, and July power prices remain elevated after last week’s heat dome.
PJM forecasts very high electricity demand this afternoon, with a strong likelihood of setting a system peak. Peak Window: 4:00 PM – 7:00 PM ETPeak Alert Period: 2:00 PM – 7:00 PM ETProjected Demand: Up to 151,535 MW Extreme heat across the region is driving high energy demand, putting additional strain on the grid during peak hours. Important…
Capacity costs are climbing fast in PJM, while heat continues to drive strong energy demand. The latest Base Residual Capacity Auction began on June 30, and recent results reflect a major increase in grid costs. Natural gas prices have also edged higher, and July power prices remain elevated after last week’s heat dome.
Natural gas is still trading in the low $3 range, supported by strong production and LNG exports back above 18 Bcf/d. Forward pricing for next winter remains relatively attractive, especially with an El Niño pattern on the radar. On the power side, May index prices averaged under 4 cents per kWh, and many 2029 months (outside of July and winter) are now pricing below the next two years. For many businesses, this is a good window to consider small, targeted hedges rather than sitting fully on the sidelines.
Based on current PJM load and weather forecasts, there is a high risk that a system annual peak could be established each day this week between the hours noted below. Monday, June 29Peak Hour: 5:00 PM – 6:00 PM EDTPeak Demand Forecast: 142,963 MW Tuesday, June 30Peak Hour: 5:00 PM – 6:00 PM EDTPeak Demand Forecast: 148,823 MW Wednesday,…
Natural gas is still trading in the low $3 range, supported by strong production and LNG exports back above 18 Bcf/d. Forward pricing for next winter remains relatively attractive, especially with an El Niño pattern on the radar. On the power side, May index prices averaged under 4 cents per kWh, and many 2029 months (outside of July and winter) are now pricing below the next two years. For many businesses, this is a good window to consider small, targeted hedges rather than sitting fully on the sidelines.
Natural gas is still trading in the low $3 range, supported by strong production and LNG exports back above 18 Bcf/d. Forward pricing for next winter remains relatively attractive, especially with an El Niño pattern on the radar. On the power side, May index prices averaged under 4 cents per kWh, and many 2029 months (outside of July and winter) are now pricing below the next two years. For many businesses, this is a good window to consider small, targeted hedges rather than sitting fully on the sidelines.
U.S. weather is keeping national energy demand muted this week, with mild conditions across the North and early-season heat focused in the South and Southwest. Natural gas remains in the low $3.00 range near 24‑month lows, while power futures show wider winter vs. shoulder-month spreads. LNG exports are temporarily softer on seasonal maintenance even as new Gulf Coast capacity ramps up.
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