Preparing Your Business for Higher Natural Gas Prices in 2026

The latest government forecasts show natural gas prices are on the rise. According to September’s update from the EIA, the average price for natural gas is expected to be about $3.70 per MMBtu through 2025 and could reach nearly $4.30 per MMBtu in 2026—up sharply from where we were last year, when the average price was just $2.19 per MMBtu. This steady climb accounts for a number of factors: strong demand for gas, increased exports, and stable U.S. production are all contributing to higher costs. As colder weather approaches, particularly in the Northeast where heating demand is high, natural gas prices are likely to remain volatile.

What This Means for Your Business

Now is the time to review your energy strategy and assess your current contracts, budget plans, or options for locking in rates before the next price spike. Rising natural gas prices directly translate to higher energy costs for many commercial businesses, particularly those with substantial heating or industrial process requirements.

Depending on your size and energy consumption patterns, your strategy to manage these costs will differ:

• If your team is smaller or has limited resources to actively manage energy over the long term, having budget certainty is often helpful. In this case, a fixed-rate contract can provide predictable monthly costs and help avoid unexpected price spikes in the market.

• Let’s say your team has more experience or the capacity to monitor market fluctuations and adapt accordingly. More flexible contracts—such as blended or index-based options—may be helpful. These can offer opportunities to save when prices drop, but require active management.

For teams open to longer-term solutions, on-site power generation can reduce exposure to market price swings and add resilience. If you already have a natural gas hookup, a cogeneration system helps you use that fuel more efficiently by producing both electricity and heat on-site, which is especially valuable in the Northeast, where winter demand drives price volatility and reliability concerns.

Choosing the Right Procurement Strategy

With natural gas price volatility expected to continue, evaluating your energy contracts and procurement strategies will bring great value to your bottom line. Consider questions like:

• How much bandwidth does your team have to actively manage energy costs and take advantage of market dips?
• Are there opportunities to add on-site power generation, like CHP, or improve efficiency in your existing systems?
• Is your current contract structured to handle capacity, transmission, and regulatory pass-through fees - common cost drivers in the Northeast?

Working with an experienced energy partner can help you navigate these options and tailor a strategy aligned with your business goals and risk tolerance.

Moving Forward with Confidence

Taking a proactive approach today can protect your bottom line as we head into a more expensive year for energy. The right procurement strategy—combined with on-site generation or efficiency upgrades—can help you stay ahead of market shifts.

At Catalyst Power^®, we specialize in helping businesses like yours assess current contracts, model future scenarios, and design solutions that optimize costs and reduce risk. Whether you’re looking for fixed-rate stability, market-based flexibility, on-site generation, or bundling our services altogether, we can guide you toward the best path forward. Contact our Energy Experts to learn more.