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Summer Forecasts Signaling Higher Natural Gas Prices, Soaring Demand Amid Tighter Grid Conditions

Natural Gas Intelligence · last updated

Warning signs are flashing for the U.S. electric grid this summer as the country faces above-normal temperatures, rising power demand and increased uncertainty from extreme weather events.

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FERC at its monthly meeting last Thursday unveiled its summer assessment, in parallel with one by the North American Electric Reliability Corporation (NERC). PJM Interconnection LLC, the nation’s largest regional transmission organization, separately published a sobering outlook about potential generation shortfalls, in the hotter months ahead.

If the summer weather is “average,” the grids should work as designed, federal and state regulators said. With heightened demand, extreme heat, adverse weather conditions, or a decline in renewable generation, there could be issues, though.

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