Comparing January 2018 LMP Prices to the Last Polar Vortex

By Michael DeCaluwe

January 17, 2018 – Taking a look at this year’s index power prices vs. those we saw in the last polar vortex, most markets are mirroring what we saw then.

At that time, prices rose higher as the cold continued. We’ve seen the same initial burst of cold weather this season. If this cold is prolonged, we might see prices exceed those we saw at that time.

What rising prices mean for your company energy strategy.

Those that are on index pricing might want to look at fixed prices to protect your remaining winter energy budget.

Similarly, companies on a fixed energy product may review fixing future volumes because any stress on current supply pictures might have a long-term bullish effect on pricing.

Any questions? Contact one of our Strategic Energy Advisors at 630-225-4550 to discuss your company’s natural gas strategy.

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