Customers will pay significantly more for energy this summer, according to the US Energy Information Administration (EIA). For instance, electricity prices in the Northeast regions (ISO New England, New York ISO, and PJM markets) will exceed $100 per megawatthour (MWh) between June and August 2022, double an average of $50/MWh last summer. Natural gas price hikes are driving the market: the Henry Hub averaged $8.14 per million British thermal units (MMBtu) in May 2022, compared with $2.91/MMBtu in May 2021. In the past, other sources, like coal, picked up the slack and stabilized pricing, but such offsetting is not occurring this year for a variety of reasons. One possible repercussion is a reduction in demand as consumers search for ways to limit their rapidly rising expenses.
