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How Will The Summer Season Impact Electricity Prices?

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During the summer months, consumers turn on their air conditioners to stay cool as temperatures rise. 

In recent years, that spike in electricity use has become more pronounced. 

So, how does that increased demand impact electricity prices, and what can we expect for this summer? 

Electricity Pricing

To understand how the summer weather impacts electricity prices, you have to first understand what factors influence electricity prices. In general, the electricity market follows two cycles:

  • The seasonal cycle: Demand for energy rises during winter (peak heating season) and summer (peak cooling season) and drops during spring and autumn.

  • The energy market cycle: As in other openly-traded markets, energy prices tend to rise and fall over the course of four- to eight-year cycles with phases of flat and low, rising, flat and high, and falling prices.

Based on those two cycles, electricity demand generally rises during the summer (peak cooling season) and winter months (peak heating season) and falls in spring and autumn.

Summer Forecast 

So, what impact can we expect for this summer’s prices? We recently broke down this summer’s weather forecast and energy market outlook, which you can watch in the recording below. 

In addition to our report, according to the U.S. Energy Information Administration (EIA) and North American Electric Reliability Council (NERC), most U.S. regions should have sufficient power resources to ensure electric reliability this summer. 

Fixed Rate Electricity Plan 

While it’s certainly important to stay on top of your energy costs, as a small business owner, you have more pressing concerns than the unpredictability of electricity rates during the summer months. 

Fortunately, there’s a simple and reliable solution for small businesses.    

A Fixed Rate Electricity plan allows you to lock in your electricity rate for the duration of your contract term (usually 12-24 months), regardless of summer heat waves or energy market fluctuations. While a fixed rate plan may not directly translate to lower costs, your rate will never exceed the agreed-upon rate in your contract during the length of its term. That gives you greater comfort and added flexibility to focus on what’s most important: running your business.  

Want to learn how you can lock-in a Fixed Rate Electricity plan for your business this summer? 

Check out our Rates

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