As spring gives way to summer, energy markets are briefly softening, offering commercial and industrial customers a short-lived reprieve. Natural gas forward prices have dropped $0.60-$1.00 month-over-month thanks to strong production, steady storage injections, and mild shoulder-season weather. Still, prices remain elevated compared to last year.
On the power side, PJM’s latest capacity auction delivered a shock: clearing at $270/MW-day (up from $29), effective June 2025. This nearly tenfold increase is already beginning to push 2026 forward power prices higher, particularly in the Mid-Atlantic.
Cooling Degree Day forecasts show a 3-4% drop in total U.S. summer cooling demand compared to 2024, but demand still exceeds the 30-year norm. While not as extreme as last year, heat waves could still drive sharp, event-based pricing spikes across natural gas and electricity markets.
