Analysis: Abundant Natural Gas Supplies Spur Lower Electricity Costs for Ohio

In energy — like all other sectors of the economy — the free marketplace works, if politicians allow it. That fact was proved again last month when Ohio’s wholesale electricity prices reached new lows before rebounding slightly.

According to analysis from OMA Connections Partner Scioto Energy, the decline started in June as forward prices dramatically dropped 10% and ended the month with a decline of 8%. The experts at Scioto Energy say this is a new era in wholesale electricity pricing for Ohio as the abundant natural gas in the shale reserves — along with expanded gas storage inventories — have “set the market for the steep decline to all-time lows, now trading an average of only $25 per MWh all the way out through 2024.” 7/15/2019