Winter is over, at least in the energy commodity markets. Focus now switches from concerns over cold weather and ample supply to “where we stand” heading into summer 2025 and beyond. Record natural gas demand and surging electricity demand impacts pricing moving forward. Whether futures pricing rise or fall from today’s settlement prices (see attachment) is question of the day. Today’s prices are significantly higher than year ago.

Predicting energy prices is complex due to tight supply (note: in spite of record production), geopolitical concerns, transition to renewable energy, AI boom and increased liquefied natural gas exports. Another factor is lack of gas pipelines to deliver needed gas – production is there but also a lack sufficient pipelines to move it.

Electricity pricing soared over the winter and we are generally seeing prices fall. U.S. consumers experienced a 35% increase in electricity costs over the last four years with predictions for continued increases this decade and beyond. Add to this AI development requiring massive amounts of power —  and the general question remains, where will we find extra power for AI.

Over my 26 years in this business, it is safe to say the challenges ahead are as great as I’ve seen. Plus we live in New York state. Please contact me with questions or concerns about your electricity and natural gas supply situation.

Regards,

John Thomas
Upstate Utilities, Inc.
2592 Western Ave.Suite 201
Altamont, NY  12009
518-355-4761 Office
518-391-2370 Fax
518-225-8098 Cell/Text