Texas Power Outages

Some people have asked me, "will my electricity prices go up because of the Texas power outages?"

The answer is yes. According to the stats, the number one source for electricity generation is natural gas. Thus, if natural gas becomes more expensive, your electricity rates will increase. Just a couple of days ago, "Henry Hub natural gas futures jumped 7.4% to trade at $3.127 per million British thermal units." 

Moreover, Henry Hub Natural Gas Spot Prices have increased 75% since last year. In February 2020, Natural Gas Spot Prices were under $2.00. Currently, it’s trading around $3.50. A 75% increase!

If you have a small electricity/natural gas bill, this might seem inconsequential. However, if you run a large business, you might want to consider hedging your natural gas/electricity consumption.

Chaim Orzel is the Managing Partner of Orzel Energy Solutions 276 Fifth Ave Suite 704-3062 New York, NY 10001

Orzel Energy Solutions specializes in the hedging and procurement of discounted natural gas and electricity. For hedging and procurement questions, please feel free to message Chaim Orzel.