Rise in Natural Gas prices for June 2021

For the Summer of 2021, Southern California has experienced some major heat waves.  These heat waves have caused the spot market prices for Natural Gas to increase beyond our current projections.  This rate increase is occurring because a large number of residents are running their AC units.  The constant use of these AC units strains the power grid requiring more Natural Gas to produce more electrical energy.

The need for more Natural Gas to generate more electrical energy increases the overall demand for Natural Gas.  This naturally raises the spot market price because the supply is not increasing at the same rate.  With this increase in demand, there is also a need for more truck drivers to deliver the natural gas from point A to point B.  Due to COVID-19 there is actually a shortage of truck drivers.  This is also resulting in an increase in the spot market prices.