Labor Day is here, officially signaling onset of Fall and more scrutiny on winter weather forecasts for the Northeast. Numerous predictions, including the well-known Farmers Almanac (think what you may) are calling for a cold and snowy winter in the Northeast. As stated repeatedly in previous posts, now is the time to look at locking in for the long term for both electricity and natural gas.

Bottom line is, the past two winters have been mild per historical standards resulting in lower, stable energy futures pricing. Currently, natural gas futures pricing (which drives electricity pricing to large degree) is favorable for a few years out. However, a cold winter this year, particularly one with sustained periods of cold will change everything and send pricing higher. Excellent fixed rates available now will be lost.

To date natural gas futures are unaffected by recent events in Texas. We need to be mindful that hurricane season is here and any significant storm in the Gulf of Mexico will push prices higher. Any catastrophic event like Harvey will significantly affect pricing.

Our prayers go out to the people of Texas.

Please contact us anytime to discuss in greater detail.

NYMEX Henry Hub Natural Gas Wellhead Monthly Settlement Pricing.