Power Brief

Budgets are wrapping up

As budgets wrap up and cooler weather approaches, it’s a good time to give your properties’ electricity and natural gas costs a quick check. A few small changes can help protect your budget and uncover savings heading into 2027.

Vacant electricity: Is your rate still competitive?

For our Texas communities, vacant electricity deserves a closer look. If your property is on a month-to-month or “Flex” agreement, your current rate may not automatically decrease when lower-priced options become available.

Depending on your agreement, there may be an opportunity to lower your rate with your current provider or move to another supplier. We can review the options, any cancellation terms, and the estimated savings to help you decide whether a change makes sense.

Winter Planning: Check your contracts and Strategies

Cold weather can increase heating demand and affect energy costs. Knowing when your contracts expire—and what happens afterward—helps you plan ahead.

Now is a good time to review:

• Electricity and natural gas contracts expiring in the next 6–12 months.
• Accounts on variable or month-to-month pricing.
• Renewal notices and cancellation deadlines.
• Budget assumptions for seasonal usage.
• Purchasing Strategies

The right hedging and purchasing strategies can help you navigate challenging energy markets with confidence. We can review your entire portfolio and develop a tailored plan that aligns with your budget, goals, and risk tolerance.

Winter Weather & Energy: What could it Mean for your Budget

As we head into winter, weather will be an important factor in both energy usage and market prices. Extended cold spells can increase demand for natural gas and electricity, putting upward pressure on costs. Milder temperatures can ease demand, although a single cold snap can still cause short-term price swings.

Forecasts favor above-normal temperatures heading into November, which could limit heating demand and put downward pressure on energy prices. A milder start to the season would also reduce the likelihood of prolonged periods of elevated demand.

If warmer conditions continue into winter across major heating markets, natural gas demand could remain below seasonal norms, helping preserve storage inventories and easing upward pressure on both natural gas and electricity prices. However, cold snaps can still drive short-term price increases, making weather trends important to watch as winter approaches.

Ercot Market update: Lower Forward Prices create purchasing Opportunities

ERCOT forward prices have declined, creating an opportunity to evaluate future electricity purchases. Calendar years 2027 and 2028 are trading near the bottom of their historical ranges, offering attractive options for properties with upcoming renewals.

Meanwhile, anticipated electricity demand from data centers could put upward pressure on future prices and increase volatility in the real-time market. The timing of that demand remains uncertain, making today’s lower prices worth reviewing.

Forward Price Snapshot

Delivery Year Current Price Change

2027 $39.85/MWhDown $2.20/MWh

2028 $45.81/MWhDown $2.02/MWh

2029 $50.06/MWhDown $1.32/MWh

2030 $52.83/MWhDown $0.18/MWh

The largest declines occurred in 2027 and 2028, while prices for later years remained comparatively stable. Relative to the past three years of trading history, 2027 pricing ranks in the 2nd percentile, and 2028 pricing ranks in the 19th percentile—placing both toward the lower end of their observed ranges.

What This Means for Your Portfolio

You may have an opportunity to secure future pricing before additional demand changes market conditions. We can review your contract expirations and evaluate whether purchasing now, or staggering purchases over time, aligns with your budget and goals.

Prices reflect the market snapshot used for this update and are subject to change. Wholesale forward prices are not all-inclusive retail electricity rates.

PJM -Regional Energy Update:

• Maryland—BGE & PEPCO: Projected growth in electricity demand from data centers continues to support elevated forward prices. Although calendar-year 2027 pricing has eased from its late-September peak, it remains near the 95th percentile of its historical range.
• Illinois—ComEd: Calendar-year 2027 pricing is trading near the 80th percentile of its three-year range, while remaining below comparable PJM hubs.
• New England: Forward energy prices rebounded from a six-week low last week, rising approximately 2% across calendar-year 2027–2030 contracts.

Natural Gas

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