EIA: U.S. Gas Use Down in 4 Regions Amid Power Price Jump


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Demand for natural gas-fired power fell in at least 
four U.S. regions last year compared with 2024 while average wholesale 
day-ahead electricity prices surged, the Energy Information Administration said 
in an analysis published Monday (2/2).

   Higher natural gas fuel costs led the Mid-Atlantic, Midwest, and Texas to 
favor cheaper coal and rapidly expanding solar generation. The Northwest also 
saw declines in gas usage, though this was driven by a milder winter and 
slightly improved hydropower availability.

   New England prices jumped by $29 per megawatthour, the nation's largest 
increase, while Texas and the Mid-Atlantic also saw significant wholesale 
spikes. Average wholesale day-ahead electricity prices represent the market 
cost for power delivered the following day, typically setting the marginal 
price for the entire grid.

   In a separate analysis, EIA said coal-fired electricity generation surged 
during January's Winter Storm Fern as grid operators looked at fuel sources 
beyond natural gas to maintain supply. Coal's share of power generation across 
the 48 Lower U.S. states rose to 21% during the week ended Jan. 25, up from the 
prior week's 17%.




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