A tale of two natural gas markets
But if you missed it, note what is happening to some consumers who opted for (something a bit closer to) free market pricing in the electricity markets. Was a good deal in the short haul may not be working out in the long run. Again, be wary of the big shiny object. Why the big spike in electricity prices? It also comes back to what is happening in natural gas markets.
The explanation of course is that much of this is not about aggregate supply, but distribution. The development of pipeline infrastructure in Pennsylvania is soon to become a bigger issue than the actual fracking ever was. That isn't a new issue either for Pittsburgh. In the past, the issue of natural gas pipeline capacity to Pittsburgh was a bigger news item than today. There was once a time when a proposed diversion of natural gas capacity away from Pittsburgh prompted Mayor Lawrence to say "America's entire economy will be thrown out of line if Pittsburgh does not get the additional (natural) gas." As goes Pittsburgh so goes the nation?
Anyway, you can't have it both ways. Note the two big natural gas stories of late: Pa. firms expect natural-gas boom to help manufacturing and then this one of many: Price 'turbulence' in Appalachian shales to last through 2016: TPH official. Nobody connects the two stories?