KCC: Don’t Expect Energy Prices To Drop

The Kansas Corporation Commission is alerting consumers that energy prices are expected to remain high for the foreseeable future, based on current national forecasts.

This will likely increase the cost to cool homes and businesses this summer and heat them this winter.

Monthly wholesale natural gas prices have recently increased to levels not seen in the United States since September 2008.

Wholesale electricity prices have increased as well.

In mid-April, the New York Mercantile Exchange futures price for natural gas climbed to nearly $8 per Metric Million British thermal units for May and June, with prices over $8 for the rest of this year and upcoming winter.

For context, natural gas prices regularly traded in the $2 to $3 range for much of the last decade.

Wholesale prices for natural gas are based on supply and demand and are not regulated, a decision made by the U.S. Congress in the 1980s.