Gas and Coal Will Be Tightest Since 2014 This Winter, Duke Says

(Bloomberg) -- Gas and coal -- two of the key commodities used to keep people warm in the winter -- are in the shortest supply and at the highest prices since the winter of 2014, according to Duke Energy Corp. Chief Financial Officer Steve Young.

“It’s been a while,” since we’ve seen commodity prices like this, said Young, in an interview on Thursday. “The winter of 2014 we had a very cold polar vortex winter and we saw spiking of gas prices.” 

Duke, which reported its earnings earlier Thursday, has strong coal and gas reserves for this winter, but will pass on higher prices to customers. Regions that rely more on gas or coal for heat and electricity will see rates increase more than regions where a greater proportion of power comes from nuclear, hydropower or renewable energy, Young said.

Meanwhile, the global supply chain slowdown has also affected the company’s development of solar farms. “There are constraints in the supply chain on renewables, panels in particular,” he said. “Some of those projects that have been slated for the future may have some delays.”

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