Increasing Demand Keeps Upward Pressure on Energy Prices

February 16, 2013

Week in Review for March 1-7, 2013

For the second week in a row, energy prices inched upward. The average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 1.8% and the 12-month average price for peak power on the PJM rose by 1.2 %.The variable receiving most of the blame for the recent price increases was storage. For the second consecutive week, the U.S. Energy Information Administration (EIA) reported a larger-than-expected gas withdrawal from storage. This seemed to spook the market. These larger-than-expected withdrawals have added fuel to the theory that energy demand was growing and natural gas production was leveling off.

A recent EIA report showed that natural gas demand was up 8.9% from last year at this time, while another report showed that production was flat during the same 12 months. On the demand side, this winter was a little colder than last year and thus accounted for some of the demand increases. However, analysts noted that other demand components are now entering the equation. More power plants, chemical plants and various industrial users are looking to switch to low priced, clean natural gas.

Although this potential tightening of supply and demand has applied some upward pressure to energy prices over the last two weeks, we are hopeful that the shale gas phenomenon will keep the bulls in check for the next few years.


By Russell Lacey April 10, 2026
For business owners in Maryland, Washington, DC, and Virginia —right here in our backyard —energy costs are more than just a line item: they are a significant variable that can impact quarterly profitability and long-term operational planning. In recent years, the natural gas market has been characterized by notable volatility. From global supply chain disruptions to shifting domestic production levels, the price you pay for the blue flame in your furnace or the heat in your commercial kitchen has likely felt like a moving target. At Electric Advisors, Inc. , we believe that data-driven decision-making is the only way to effectively manage utility expenses. To help you understand where the market has been and where it is going, we have analyzed the historical procurement costs for Washington Gas (WGL) and compared them to the current opportunities available through competitive suppliers across Maryland, Washington, DC, and Virginia. The results are clear: across the WGL service territory in MD, DC, and VA , the cost of sticking with the utility’s default Purchased Gas Charge (PGC) may be significantly higher than many business owners realize. The Benchmark: Washington Gas Historical PGC Rates in Maryland, DC, and Virginia Every month, Washington Gas updates its Purchased Gas Charge (PGC) . This is the rate at which the utility passes through the cost of the natural gas it buys on the wholesale market to its customers. By law, the utility does not make a profit on the gas itself; they make their money on the delivery and infrastructure. However, the price they pay—and the price you eventually see on your bill—is subject to the fluctuations of the monthly wholesale market. For businesses in the broader WGL footprint, the important takeaway is this: Washington Gas default supply pricing and competitive market opportunities are consistent across its service territory in Maryland, Washington, DC, and Virginia. In other words, the same benchmark applies whether your business is in suburban Maryland, downtown DC, or Northern Virginia. Looking back at the last 24 months across the WGL service territory in MD, DC, and VA , we see a story of dramatic shifts: 24-Month Average WGL PGC: Approximately $0.68 per therm . The 2025 Spike: In April 2025, rates peaked at a staggering $0.8085 per therm . The 2026 Moderation: As of April 2026, the WGL rate has settled to $0.6382 per therm . While the 2026 rate is a welcome decrease from the highs of the previous year, it remains significantly higher than the rates seen a decade ago. For context, in 2010, the rate hovered around $0.32 per therm. We have seen a steady, long-term upward trend that necessitates a more proactive approach to commercial natural gas rates .
March 3, 2026
Helping Washington D.C. businesses take advantage of their sales tax exemption opportunities. Did you know that restaurants don't have to pay sales tax?
November 11, 2025
What’s Behind the Spike in Electricity Use—and Why It Matters