Energy markets sent mixed signals in August, as forward natural gas prices dipped slightly from July highs while power prices held firm across major Eastern ISOs. Despite the near-term pullback in gas, forward prices remain elevated compared to 2024, reflecting continued structural tightness in storage and supply.
In power markets, forward pricing in PJM, NYISO, and ISO-NE remained stable, supported by capacity constraints, strong heat-rate assumptions, and underinvestment in new generation. PJM’s latest capacity auction cleared at its cap, highlighting thin reserve margins and limited new supply.
Policy developments are also reshaping the outlook. A recent executive order directing agencies to fast-track permitting for AI-related data centers is expected to accelerate base load growth, and with over 80 GW of gas-fired capacity planned through 2030, demand for both power and gas is set to climb. However, permitting delays, long equipment lead times, and transmission backlogs threaten to slow deployment, reinforcing market tightness in the years ahead.
