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Energy <em>Market Snapshot for Monday July 24 2023 Natural Gas Energy Electricity Weather Headlines<em>

WEATHER: 6-10 DAY AND 8-14 DAY OUTLOOK

US weather map
<em>US Weather Map<em>
  • The Henry Hub, Natural Gas Market, moved sharply upward this past week, and if you look at the NOAA Temperature Outlook, you can see why. 
  • Electricity Demand will skyrocket these two weeks as the massive heat wave expands. The same heat wave that has seen Phoenix, AZ, with three straight weeks of temperatures ABOVE 110 degrees, moves eastward and extends northward. The entire Southeast and upwards into Kansas and Missouri could see record temperatures soon.
  • While not surprising with the heat wave moving eastward, electricity prices have also increased over the last few weeks. If the air conditioners were not on before, they will be by early August. Further out, longer-term electricity agreements are starting to look better as pricing in 2025-2027 is pretty much even.
  • Waters in parts of the Atlantic and the Gulf of Mexico have warmed up to 97 degrees! This is mainly in the waters off of Key West. To be clear, that is about the average temperature of a hot tub.

Energy: PJM Peak Demand Alerts This Week!

The PJM interconnection grid network is projecting that the hot weather later this week will lead to the potential for Wednesday, Thursday, and Friday being three of the five days that will affect capacity costs for next year.  

Forecast Peak Usage This Week:

Wed, Jul 26, 2023

• 05:00 pm – 06:00 pm EST • 144,444 kWh

Thu, Jul 27, 2023

• 05:00 pm – 06:00 pm EST •150,646 kWh

Fri, Jul 28, 2023

  • 04:00 pm – 05:00 pm • 152,348 kWh

Peak Demand Days Recorded for 2023:

What are peak demand warnings?

One of the five highest-demand days (during the summer months) when PJM chooses to measure the peak demand—typically during the hour of the day with the highest demand. Your capacity tag will affect your capacity costs and ~30% of your energy rate. 

Make any adjustments to reduce usage, such as raising your AC temp, moving a shift to nighttime, etc.

EIA: WEEKLY NATURAL GAS STORAGE REPORT

With the August gas price increasing almost 30 cents this past week, this should be a loud alarm warning you not to wait any longer to execute your next gas or electricity agreement. 

The heat wave will raise gas prices even higher for gas and electricity, and you could be left with a much higher price for natural gas with no relief soon to bring it down.

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