Higher Energy Prices Drive Higher Food Prices
June 15, 2022
Retail electricity prices are typically determined by longer-term contracts and regulations. Wholesale prices reflect more immediate supply/demand dynamics. If wholesale prices are any indication, we may see big retail price increases soon.
Natural Gas and Coal account for 38% and 22% of electric power in the US, respectively. Natural Gas prices remain high, and Coal plants are experiencing retirements, delivery challenges, and low stocks. Even regulated prices will reflect the supply constraints over time.
As always, please do not hesitate to contact us with any questions.
Horizon Kinetics LLC
Confidentiality Notice: This e-mail, and any attachments, contains information that is, or may be confidential or proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Furthermore, this communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell securities or any product.
© 2023 Horizon Kinetics LLC ®. All rights reserved.