Summer 2025 Electricity and Natural Gas Update

Posted on By pnccadmin

In April I mentioned, “looking ahead, we need further clarification to see where pricing is headed.” Regarding natural gas, per attached, gas futures are nicely lower and I recommend signing 24 or 36 month fixed rate contracts. In today’s world there is significantly greater chance for upside pricing than downside.

NYMEX Futures 7-24-2025Download

Regarding electricity, below is information written to a good, longtime customer on July 9th.

Attached is few articles describing in some detail “where we’re at” and what the future may hold nationally and in New York state regarding electricity policy. Many factors are in play:

  1. Phase out of dependable fossil fuel generation plants while constructing and replacing with renewable energy sources — solar and wind — is more expensive and difficult than
    originally thought. Their dependability during peak consumption periods, particularly during winter months is not impressive.
  2. Electricity demand is rising during this phase out period. Use of electronic devices, smart home products and electric vehicles has risen significantly in recent years.
  3. Construction of data centers powering artificial intelligence (AI) and other computer services is here, it will happen and require enormous amounts of electricity.
  4. The U.S. has an aging electricity transmission and distribution system requiring billions of dollars to upgrade and handle future electricity needs.

Specific to New York state, Gov. Hochul recently announced plans to build a nuclear power plant in Upstate New York. We need power (NY demands “clean power” leaving only nuclear to fit the bill along with wind and solar). This is an indication or admission that NY’s push for implementing renewable energy is not materializing. Many say it will be impossible to build another nuclear power plant in the state. Very controversial. All of the above point to volatility in the electricity markets for years to come – volatility to me indicates significant price spikes.

I recommend signing 24 or 36 month fixed rate electricity contracts.

Please contact me anytime.

Regards,

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