Winter storm sweeps across the United States: 820,000 households lose power, natural gas price exceeds $6 for the first time in 24 years!

A winter storm sweeping through two-thirds of the eastern United States is posing a severe test to the power system, with natural gas prices soaring to their highest levels in more than two decades. On Monday New York time, natural gas futures surged 20% in one day, with February contracts breaking through $6 per million British thermal units, setting a new high since 2002. According to media reports, as of Monday morning local time, **about 823,000 households and businesses have experienced power outages, with more than half concentrated in Tennessee, Mississippi, and Louisiana.** Ice and snow have damaged a large number of distribution lines and led to about 12% of total U.S. natural gas production being interrupted. Amid persistent cold weather forecasts, **natural gas prices have climbed 70% in one week, marking the largest single-week gain since records began in 1990.** Despite the grid not having experienced a systemic collapse, below-freezing temperatures and wind chills are expected to persist throughout the week, challenging electricity demand records from Texas to New England. U.S. authorities and grid operators have activated emergency plans to cope with potentially escalating supply pressure. ## Wide-Ranging Impact of Extreme Weather According to AccuWeather meteorologist Nicole Chorniak’s analysis, this storm has resulted in ice accumulation exceeding one inch across several Southern Plains and Southeastern states—including parts of Oklahoma, Louisiana, Mississippi, and South Carolina—while the Northeast has faced heavy snowfall. New Bloomfield, Pennsylvania had snow depths reach 58 centimeters, and more than 28 centimeters accumulated in New York City's Central Park. Chorniak points out that it may take days to restore power systems in hard-hit areas, with notable risks expected. Forecasts say temperatures across the eastern and central U.S. will remain below historical averages throughout the week. The U.S. National Weather Service has warned that the frigid weather could last into February. **Air transportation has also been severely impacted.** FlightAware data shows that as of Monday morning New York time, about 3,700 flights had been canceled. Although this is down from the peak of nearly 11,600 flights Sunday, operations are still pressured. ## Grid Operators Strive to Cope With Surging Demand PJM Interconnection LLC, the largest U.S. grid operator, issued a warning that it is facing unprecedented electricity demand peaks for seven consecutive days and is requiring power plants to ensure steady natural gas supplies throughout the week. In Texas, the state’s grid operator is forecasting that electricity demand on Monday will surge to nearly 75 gigawatts. According to the Texas Electric Reliability Council (ERCOT) website, the state currently has adequate power supply to meet demand. Though this figure is exceptionally high for winter, it is still below ERCOT's previous forecast of 86 gigawatts, which could have potentially surpassed the record peak set in August 2023. Meanwhile, **some regional grid operators have been granted temporary waivers from pollution emission limits to boost output from diesel and coal-powered high-pollution plants.** In addition, the U.S. Department of Energy has asked grid operators to tap into backup electricity sources from various facilities, including data centers, to maintain system stability. Risk Warning and Disclaimer The market contains risks, and investments should be made with caution. This article does not constitute personal investment advice and has not considered the special investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investing accordingly is at your own risk.