WASHINGTON — The Energy Information Administration (EIA) expects Henry Hub natural gas spot prices to average $4.70 per million Btu (MMBtu) this year, a $0.75-per-MMBtu increase over the 2009 average and $0.22 per MMBtu higher than in last month’s forecast.Most of the increase in the price forecast occurs in the third quarter of this year, due to projections of increased hurricane activity in the Gulf of Mexico this season, which pushed spot prices higher. EIA expects the Henry Hub spot prices to average $5.17 per MMBtu in 2011, up $0.11 per MMBtu from last month’s forecast.Trying to estimate your laundry’s natural gas bills is challenging for a number of reasons. In addition to prices being influenced by potential hurricanes, there is the ongoing “tug of war” between hot weather and ample natural-gas supplies. Analysts say prices appear stuck between downward pressure from robust supplies and production and hotter-than-normal temperatures across the country.Since this summer has started out much warmer than last summer, there has been a greater demand for air conditioning. EIA estimates the total consumption of electricity across all sections during the first half of this year increased by 3.8% from the first half of 2009. Consumption is expected to show similar year-over-year growth of 3.5% during the second half of 2010.EIA estimates that residential retail electricity prices during the first half of 2010 were about the same as in the first half of 2009. However, rising fuel costs for natural gas and coal generation are likely to push up retail prices later this year, causing prices during the entire year to grow by about 0.8%.
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