As the calendar flips from August to September, ICAP management season is winding down, school is back in session and both the Mets and the Yankees are in first place. And while this summer was pretty hot for New York baseball, it was very ordinary in terms of the temperature. The months of July and August are particularly important for electricity customers in New York because a significant portion of next year’s electricity bill, the capacity obligation, is based on how much electricity a meter uses on the grid’s one highest hour of demand during those two months.

Earlier this year, we wrote an article describing the rapid acceleration of price volatility in the natural gas markets, with a chart that showed daily price movement at the Henry Hub, the national benchmark trading hub for natural gas. In this chart, shown in Figure 1, the y-axis is the daily price change in natural gas prices over the last ten years. A negative number means the price went down and a positive number means the prices increased during that day’s trading session. This chart shows that since the summer of 2021, there is a higher degree of scatter among the data points, indicating that gas prices have become increasingly volatile over the past 12 months. One interesting feature that this data shows is this volatility has not been predominantly in one direction, or skewed to either the upside or downside, rather, it has been evenly distributed around the mean.

Shriners Children’s began out of the polio epidemic in the late 1910s, with the first hospital opening in Shreveport in 1922. Today, they operate locations throughout the US and in two other countries, all with the same mission: to change and improve the lives of children. In addition to top-of-the-line treatments for children, Shriners also excels in research and physician education. With specialties in orthopedics, burns, craniofacial conditions, and many more, the hospitals follow the vision of the Shriners Fraternity to serve mankind through the care of children.

The Inflation Reduction Act was signed into law this month. As a budget reconciliation law, it impacts federal income and spending. For 5 and our customers, this law provides increased incentives for on-site renewable projects that support the energy transition.

Last fall, 5 discussed the mechanism by which costs associated with the high-voltage transmission system are allocated across end-users in Texas. The current system enables the four Investor-Owned Utilities (IOUs) to update their tariffs twice a year, in March and in September, allowing the utilities to recoup their external costs for the state’s transmission system. Like last year, most customer classes across the four utilities should expect significant rate increases in September. The magnitude of these increases in each utility territory is shown in Figure 1.

Power prices across the country have been on the rise since the summer of 2021 and PJM is certainly no exception. Anyone with an electricity supply contract expiring in the next 12 months, has seen a significant increase in pricing, upwards of 120% higher than where prices were at the end of 2021. Figure 1 shows the historical trading range for forward wholesale electricity prices for calendar strip 2023 to 2027 at PJM’s largest trading hub, PJM West.

Meet 5's Corporate Coordinator, Caitlin Connolly. Caitlin got her start in energy applying for a social media internship, which eventually led to a full-time job offer. Shortly after, she found herself helping out in a variety of other departments and her role expanded greatly. Caitlin's impeccable work ethic and can-do attitude have made her an invaluable asset to our team and clients. Find out what makes her our "Get-it-Done" Guru.

What is Driving the Extreme Volatility in the Natural Gas Market?

The NYMEX Henry Hub prompt month future contract continued to push the volatility envelope this past month, with the daily change for August delivery exceeding $0.37/MMBtu. This is significant because the average daily change over the previous twelve July’s average was approximately $0.05, with a maximum average daily change of $0.08 back in 2012 (See Figure 1). Last month, we wrote about the explosion at the Freeport LNG plant south of Houston, Texas, and how it affected both international and domestic prices for natural gas.

Autobahn Motorcars has been a Fort Worth institution since 1979 selling luxury vehicles including Volvo, Jaguar, Porsche, Volkswagen, Land Rover, and BMW, as well as certified pre-owned cars. Autobahn is proud of their dedication to building strong client relationships and within the Fort Worth community-at-large. They sponsor the Cowtown Marathon, food drives for Fort Worth’s neediest families, and provide scholarships every year to local students. Autobahn’s commitment to its clients doesn’t stop on the sales floor. They also boast an impressive service department, with dedicated mechanics for each brand.

Meet Karen Sweeney, 5's Energy & Sustainability Specialist. Karen's interest in sustainability which started in high school led her to pursue roles in renewable technology and energy efficiency. To further her knowledge, she also attended Columbia University and graduated with a master's degree in Sustainability Management. Learn more about this sustainability superstar's journey to 5.