Is Your Energy Contract Ready for Summer?

When temperatures start to heat up, so does the energy market. With warmer weather, cooling demand rises, grid stress builds and without the right strategy in place, that could mean your energy bill is feeling the heat.

As we move into June, ahead of the hottest summer months, commercial buyers should assess their strategy before the temperatures, and prices, begin to climb.

Know What's on the Forecast

This summer is on track to have more variables than most, with a Super El Niño expected to push prices up on both the East and West coasts. The National Oceanic and Atmospheric Administration (NOAA) is currently predicting that El Nino is likely to emerge soon with an 82% chance in May to July 2026. That means:

• West Coast buyers face reduced hydro output as snowpack thins meaning gas plants fill the gap, and prices follow.

• Northeast buyers are looking at above-normal 90-degree days running through gas-dominant generation, stacked against RGGI carbon permit prices near record highs.

But it’s not just the Super El Niño that could impact energy prices. The National Energy Assistance Directors Association (NEADA) is speculating that this could be the hottest summer on record, or at least close to it, with their projections anticipating an 8.5% rise in electricity bills across the nation.

Review Your Demand Profile

Summer is when demand charges bite hardest. If your facility runs heavier cooling loads in June through August, your peak demand intervals likely land in those months too. One high-demand day in July can set the demand charge component of your bill for the full month.

Simple steps that can reduce exposure:

• Shift non-essential load out of on-peak hours (typically 2–7 PM, weekdays)

• Check whether your building's HVAC setpoints have drifted since last season

• If you have multiple sites, confirm which locations are most exposed to demand spikes

None of this requires a capital investment. It requires knowing where your exposure is before the heat arrives.

Confirm Your Contract Renewal Timeline

Peak season is also when energy suppliers price risk at a premium. If your contract expires in the next 12 months, summer can be a risky time to renew because it means you're buying at the top of the seasonal price curve.

Check your expiration date now. If you have flexibility, locking in fall or winter, which are historically lower-demand months, tends to produce better results than renewing under summer pressure.

The Bigger Picture

Energy costs don't move on the same calendar your contract does. Weather events, grid constraints and commodity shifts don't wait for your renewal window. The buyers who manage cost most effectively are the ones treating procurement as an ongoing process, not an annual event.

Key Takeaway

Summer heat drives both energy demand and prices higher, so a contract or demand strategy that worked in spring can leave a business exposed by August. Reviewing your demand profile and renewal timeline before peak season, rather than during it, is what keeps costs predictable.