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"Previous administrations have viewed energy as a liability instead of the immense national asset that it is...To compete globally, we must expand energy production, including commercial nuclear and liquefied natural gas, and cut the cost of energy for Americans."

Chris Wright
President-elect Donald Trump's pick to head the U.S. Energy Department

Azi Feifel

COO PROSPECT RESOURCES

Trends in the Energy Market

JANUARY 2025

Current Market News

Prompt-month NYMEX settled at $3.93 / MMBtu, on Monday, January 13. Market is definitely showing bullish signs with upward pressure caused by a tighter supply-demand balance and a preponderance of colder weather.
Natural gas production has been up, averaging 103.4 Bcf per day. Demand for electric-power generation is a primary driver for natural gas price variation. Electric power generation demand for gas remains strong, month-to-date, averaged 37.3 Bcf per day versus 36.9 Bcf per day for the same period last year.
Most of the country has been experiencing colder than average weather. Next week, a new shot of very cold air moves out of the Rockies eastward, persisting for 11-15 days. The latest models show warm up in early February, however, there is a supply of cold air in Canada that could move south.
As of the 1/16, EIA reported a withdrawal of 258 Bcf from underground storage for the week ending 1/10/2025. Inventories are 3,115 Bcf, 111 Bcf or 3.4% less than the same period last year and 77 Bcf or 2.5% more than the 5-year average.

And yet more...

WTI futures are mildly up, prompt-month crude trading at $78.82 per barrel. Upward pressure is driven primarily by sanctions imposed on the Russian oil industry. China demand for oil in 2024 fell for the first time in 20 years; soft Chinese demand has kept crude prices somewhat in check.
The economy is in neutral. U.S. added 256,000 jobs in December. Consumer confidence is weakened on expectations of higher inflation. Mortgage rates are back at their highest level since last summer.
Power forward curves for 2025 are generally up throughout the country. 2026 - 2028 curves have largely fallen from their highs. NYISO and ISONE have seen more dramatic rises. ERCOT forwards are markedly higher. Expect CAISO pricing to become more volatile as a result of the LA wildfires.
FERC has rejected attempts by PJM and the Transmission Owners to expand PJM’s rights to make changes to its transmission planning rules without stakeholder approval.

Questions about market trends? Click HERE to submit.

Charges and Credits Impacting Your Electricity Bill

The Carbon-Free Resource Adjustment (CFRA) was created by a provision in the 2021 Climate and Equitable Jobs Act. The CFRA was meant to give a subsidy over five years to Illinois nuclear power plants to support lower-cost carbon-free energy when market prices were below a certain level.

Over its first year, the CFRA delivered a total of about $2.4 billion in credits to consumers. But now, with a lower market, the CFRA is resulting in highly inflated ComEd utility bills.

Customers cannot budget for CFRA as the rate is only published monthly.

It has become a quite onerous utility burden. Unfortunately this is built into the legislation and cannot be hedged away and smoothed.

Click for ComEd FAQ

Charges and Credits Impacting Your Natural Gas Bill

The Low Income Discount Adjustments (LIDA) recovers the lost revenues for qualified low-income customers who have the specified rate services classifications for natural gas.

This Rider is applicable to all customers taking service from the Peoples Gas under Service Classification including: Small Residential Service; General Service; Large Volume Demand Service; Compressed Natural Gas; Contract Service Electric Generation; Contract Service to Prevent Bypass. As a result, your bill may have the LIDA either as a charge or a credit.

Click for LIDA Rider

Ask us how much you can SAVE by joining the Demand Response energy curtailment program!

Demand Response (DR) is an energy curtailment program offered by U.S. grid operators.

This year, Demand Response programs will pay significantly higher amounts for your participation. Medium to large electricity users may qualify when they have the operational flexibility to reduce their usage during system peak demand and during an emergency.

Email PRI to get started

♦♦♦ ENERGY NEWS♦♦♦

LATEST UPDATES

Energywire

Trump’s LNG plans rely on 1970s safety rules: With President Joe Biden’s “pause” on gas-export approvals on the way out, LNG is primed for major growth while Carter-era regulations remain unchanged.
By Mike Soraghan | Jan 8, 2025

Reuters
US gas-fired power boom reveals key emissions payoff in 2024: The 1.003 billion ton emissions figure is 3.6% up from 2023, and marks a 40% jump in gas-fired power generation emissions since 2015, according to data from Ember.

By Gavin Maguire | Jan 8, 2025

Oil Price

Large Jump in Fuel Inventories Outweighs Crude Draw: Crude oil prices were flat on the day, after the U.S. Energy Information Administration reported an estimated inventory draw of 1 million barrels for the first week of 2025.
Jan 8, 2025 | Irina Slav

Oil Price

From Pennsylvania to the Persian Gulf: The Epic History of Oil: Transitioning the global economy away from oil is a heroic task. Oil is embedded in the way nearly every major industry functions, for better and for worse.
Jan 07, 2025 at 09:40 | Haley Zaremba

Oil Price

Biden Doubles Down on Sanctions in His Final Days: Oil markets have spent the first days of 2025 focused on storms and sanctions, with Biden doubling down on sanctions in his final days in office as oil prices climb.
Jan 07, 2025 at 08:47 | Michael Kern

EIA

Spot Henry Hub natural gas prices hit a historic low in 2024 in inflation-adjusted dollars ever reported.
Jan 8, 2025 | U.S. EIA

EIA
Commercial electricity demand grew fastest in states with rapid computing facility growth
Jan 2, 2025 | U.S. EIA

PJM

PJM Statement on FERC Complaint Filed by the Governor of Pennsylvania
Dec 31, 2024 | PJM Newsroom

Energy.gov

Biden-Harris Administration Announces $30 Million to Ease Interconnection Backlog, Deliver More Energy Supply on America’s Power Grid: New Initiative Will Utilize Artificial Intelligence to Help Shorten Interconnection Application Process Timelines

Nov 25, 2024 | Energy.gov

Prior Newsletters

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Hi There!NEW: High-Low Trend Graph below

Trends in the Energy Market

JANUARY 2025

Current Market News

And yet more...

The best compliment is a referral. If you know of someone who could benefit from our services, let's set up a meeting!PRI's referral program is incentivized; we will compensate you for referring a newly enrolled client.

ENERGY PROCUREMENT REDEFINED

Hi There!
NEW: High-Low Trend Graph below

The best compliment is a referral. If you know of someone who could benefit from our services, let's set up a meeting!
_{PRI's referral program is incentivized; we will compensate you for referring a newly enrolled client.}