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Whether you’re running a small retail shop or managing a large manufacturing facility, the fluctuating price of energy directly affects your bottom line.
Recent data from the U.S. Energy Information Administration (EIA) indicates significant changes in the energy market that businesses should prepare for over the next two years.
According to the EIA’s latest Short-Term Energy Outlook (STEO), businesses across the United States are facing notable shifts in energy costs through 2026. Here’s what the data tells us about:
1. Electricity costs
Wholesale power prices are expected to rise approximately 7% in most regions in 2025, averaging $40 per megawatt-hour (MWh), with continued adjustments anticipated in 2026.
2. Natural gas
Natural gas demand is expected to rise, particularly driven by U.S. exports, which are forecast to increase by 22% in 2025 and 10% in 2026, with significant contributions from liquefied natural gas (LNG) and pipeline exports.
3. Regional variations
Businesses in the Southwest and California regions may face even steeper increases, with wholesale price jumps of 30-35% anticipated in 2025.
Key factors driving energy changes through 2026 include rising natural gas prices, growing energy demand, shifts in the oil market, and the expansion of renewable energy. These trends will affect market dynamics and energy costs, influencing businesses in various ways.
Businesses can expect to see direct impacts on utility costs, with commercial electricity rates projected to rise in 2025 but stabilize in 2026. Energy-intensive suppliers may pass on increased costs, potentially affecting supply chains through 2026.
Regional competitiveness could also shift, with businesses in higher-cost areas facing challenges. Fuel costs may see some relief in 2026 if oil prices decrease as projected.
The changing energy landscape through 2026 presents challenges, but there are proactive steps your business can take to navigate them with confidence.
By understanding the projected trends, you can make informed decisions now to lock in favorable energy rates and protect your bottom line from future volatility. Securing your energy rates today not only provides stability in the short term but also ensures your business is better positioned for the long term.
At DNE, we understand that every business is unique. We’re here to help you lock in rates, optimize your energy usage, and craft a strategy tailored to your needs. Our goal is to help you manage your energy costs effectively so you can focus on what truly matters—growing your business with peace of mind.
