Nov 5, 2020, 1:58 PM
(from APPI Energy) The utility market is experiencing volatility due to a wide variety of factors, from natural gas production levels to the approaching winter. How those increases play out on a local level can vary. A general rule of thumb is that where natural gas prices go, electricity prices follow. Natural gas has the largest influence on electricity prices because most newer power plants use natural gas to produce electricity. As we inch closer to winter and drilling companies scale back due to financial pressures brought on by low oil prices, natural gas prices have started to rise dramatically. In fact, the U.S. Energy Information Administration expects natural gas spot pricing to average over 50% higher in 2021 than in 2020.
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