Energy Markets and Grid Reliability

Natural-gas futures have surged 63% this week as forecasters warn that an Arctic blast will bring some of the coldest, snowiest conditions in years from West Texas to the Great Lakes, raising fears of a repeat of the deadly 2021 Texas freeze. In response, the U.S. Energy Department late Thursday ordered regional grid operators to be ready to take extraordinary steps to tap backup power generation to keep electricity flowing if demand spikes or plants fail. The move signals federal concern about grid reliability as heating load and power consumption are expected to soar across large parts of the country. The price spike will feed directly into fuel costs for gas-fired power plants and could increase heating and electricity bills for many consumers, especially in regions heavily dependent on natural gas for winter energy.