At the end of the first quarter of 2024, the 2025 calendar year electricity price increased from its low in 2024 of 5.4 cents to 6 cents, rising for eight consecutive weeks, with 2026 and 2027 trading at approximately the same levels, reaching a high point by April 12. Prices then experienced a four-week drop, but not as low as the mid-February levels. Table 1 depicts the electricity price trends for 2024, 2025, and 2026 updated through December 29 over the past four years.

In early 2023, the 2025 electricity strip began trading considerably higher than the 2026 and 2027 strips. By February 2024, the 2025 strip had dropped and was trading relatively equal to 2026 and 2027. During the eight-week upward run, 2026 and 2027 passed 2025 for a few weeks, then 2027 continued to drop as 2025 and 2026 increased.

Electricity prices generally tracked natural gas prices through the first and second quarters of 2024, but the eight-week run on electricity beginning February 16 was not indicative of natural gas futures, as depicted in Table 2. Overall, electricity prices continue to track natural gas prices.

Natural gas futures for 2026 and 2027 have continued to trade higher than those for 2025 since the end of 2023, as depicted in Table 3, with prices at levels similar to those just prior to the Russian invasion of Ukraine. Natural gas storage levels remain very favorable, well above the five-year maximum, as shown in Table 4.

Note: Electricity prices referenced here are energy-only and do not reflect a total electricity supply price that includes capacity, ancillaries, RECs, Fuel Security, etc.