Natural Gas Price Trends and Impact on Electricity Rates in Three Charts

Natural Gas Price Trends and Impact on Electricity Rates in Three Charts

Monthly Minute with Muirfield February 2018: Why do I receive 3 charts from Muirfield Energy every month?

Hello everyone! Thank you for your patience as we transition to a new video newsletter format! In this month’s newsletter, we’re discussing the importance of the 3 charts you receive each month. What are they and why are they important? 

Video Transcript

Welcome to this month’s Monthly Minute with Muirfield.

My name is Ann-Marie Oman, and I work out of our corporate office in Dublin, Ohio. First, I’d like to thank you for your patience as we’ve transitioned from a traditional newsletter to our monthly video newsletter.

You will still continue to receive the three charts that you are used to receiving monthly.The reason why these charts are important is because natural gas is now a driver in the cost of electricity. It is also being used in the generation of electricity.

Let’s take a look at the first chart. PJM and Ercot are regional transmission organizations also known as RTOs. The reason why they are important is because they manage and distribute the generation of electricity making sure you have electric when you need it. This chart reflects pricing and geographies within the PJM RTO, or regional transmission organization. This tells you what pricing has been and where it is likely to go.

Natural gas is traded on a New York Mercantile exchange, also known as the NYMEX. This chart is a good indicator of where pricing is headed. Three days prior to the end of the month, the contract settles.

This brings us to our final slide, titled natural gas NYMEX settlement prices. This graph is a good indicator of where pricing is headed and is also used in the calculation of many variable rate natural gas supply agreements.

Remember, your business is unique, so is your energy solution. If you have any comments, suggestions or questions, feel free to contact your local energy consultant or you can reach out to me, Ann-Marie Oman, at the corporate office.

Thank you. Have a great day, and we’ll see you next month.

By |February 15th, 2018|Blog|0 Comments