The U.S natural gas markets have been constrained by increases in LNG exports, reduced gas production and storage, and returns to pre-covid levels of demand. Natural Gas prices have risen from the $3 level to $5, and in the New England area natural gas prices are big determinants of electricity prices. Given this recent constraint and risks of a strong winter electricity prices for the coming months are expected to increase.
Above is a table of the new proposed electricity rates for Large C&I, and Small C&I Customers in Eversource and National Grid, which have not yet been approved by the DPU but are a clear indicator of increasing costs this winter. On average National Grid rates have increased by 50% compared to the previous winter, and Eversource rates by an average of 40%.
