December 6, 2022 - The U.S. Energy Information Administration (EIA) expects higher wholesale electricity prices this winter in every region of the country. According to EIA’s December Short-Term Energy Outlook (STEO), the increase in wholesale winter electricity prices ranges from 31% higher in the Southwest to more than 60% higher in the mid-Atlantic and Central regions.
“Although we expect that U.S. electricity customers will pay more for electricity, we do not expect retail electricity prices to increase as much wholesale prices this winter,” said EIA Administrator Joe DeCarolis.
EIA forecasts the U.S. residential electricity price this winter will average 14.5 cents per kilowatthour, a 6% increase from last winter.
New England could have wholesale electricity price peaks as high as $215 per megawatthour in January, which would be more than three times higher than peak rates elsewhere in the United States. Limited natural gas pipeline capacity makes it likely that New England will need to import liquefied natural gas (LNG) or fuel oil to support electricity demand this winter. EIA expects significantly stronger global demand for LNG than average this winter, which contributes to its forecast of New England’s disproportionately large increases in wholesale electricity prices.
Other key takeaways from the December 2022 STEO forecast include:
The full December 2022 STEO is available on the EIA website.