Council Forecasts Broader Range for Natural Gas Prices

Uncertainty about future global supply and demand tightens market

The Council monitors its power planning assumptions on a regular basis to identify any significant changes that would affect its power plan. It recently released its revised forecast for fuel prices, which will be used to develop its Seventh Power Plan.

The natural gas price forecast is the most important fuel forecast for the plan, and it's also the most widely used by others in the region for their analyses. The projected price range for natural gas is broader, reflecting greater uncertainty about its future supply and demand. Unlike the natural gas price forecast, the oil and coal forecasts have little effect on the Council's power plan, and they're also not used as much in the region.

Low natural gas prices would mean lower electricity prices, while high prices would mean higher wholesale prices for electricity. A more complete picture of how these fuel prices would play out will be tested during the development of the Seventh Power Plan, which is expected to be completed in late 2015.