As the mild winter has placed downward pressure on natural gas prices, the wholesale electric market has moved in a similar fashion. While it’s impossible to say how long this trend may last, it’s certainly presenting an opportunity for many customers to contract at historically low electric rates.
With the increase in capacity costs for electric planning year 2021/2022 (June 1, 2021-May 31, 2022), the market lows are allowing many customers to lock in for a longer term using the downward trend in energy pricing to help absorb the higher capacity costs. Now is a good time to evaluate your current electric purchasing strategy prior to increased system demand as we head into warmer weather months. Summer can bring volatility in the electric market, so please reach out to your CES representative to ensure you are protected.
FirstEnergy Solutions (FES) Financial Update: After receiving all necessary approvals, FES officially announced that it had successfully completed its Chapter 11 restructuring as of Feb. 27, 2020. With this completion, FirstEnergy Solutions is now operating as an independent power producer as a new company and under a new name of Energy Harbor. If you have a current agreement with FES, it is anticipated you will see the name change from FES to Energy Harbor reflected on your monthly invoices in the next few billing cycles. Your current agreement(s) will continue to be served, without disruption, and at the agreed upon terms and conditions.
Natural gas prices, which trade on the NYMEX (New York Mercantile Exchange) futures market, have tested all-time historical lows over the past few months:
- Jan 2020 NYMEX gas = $2.16/MMBtu
- Lowest January closing gas price since 1999
- Feb 2020 NYMEX gas = $1.88/MMBtu
- Lowest February closing gas price since 2002
- Mar 2020 NYMEX gas = $1.82/MMBtu
- Other than 2016, lowest March closing gas price since 1999
CES Program Energy Consultant: Emilie Snider at firstname.lastname@example.org or (419) 491-1017