Winter's Impact on Energy Prices and How to Reduce Risk

Extreme weather events can have a major impact on energy prices. 

In 2014, the polar vortex caused prices to skyrocket across the country, including in the Electric Reliability Council of Texas (ERCOT) and PJM service territories. 

In ERCOT, wholesale prices reached $5,000/megawatt hour (MWh) for the first time ever and average electricity prices were greater than $1,300/MWh — 40 times higher than average in ERCOT. For PJM, the average cost to ensure reliable power delivery shot up from $53/MWh in 2013 to $150/MWh in January 2014.

Thus, it's important to take the necessary precautions to protect your business. Direct Energy Business is here to help. We've put together this straightforward guide to help commercial and industrial businesses mitigate their risk exposure and get the most out of their energy budget: 

Winter's Impact on Energy Prices & How To Decrease Risk from Direct Energy Business

You can protect your business from unexpected winter price spikes by both understanding the components of your energy product and examining your risk exposure.