Natural gas futures prices for June 2014 delivery (for the five-day period ending March 6, 2014) averaged $4.55/MMBtu. Current options and futures prices imply that market participants place the lower and upper bounds for the 95% confidence interval for June 2014 contracts at $3.51/MMBtu and $5.90/MMBtu, respectively. At this time last year, the natural gas futures contract for June 2013 averaged $3.61/MMBtu and the corresponding lower and upper limits of the 95% confidence interval were $2.79/MMBtu and $4.67/MMBtu.
U.S. Coal Prices
Annual average coal prices to the electric power industry fell for the second consecutive year, from $2.38/MMBtu in 2012 to $2.35/MMBtu in 2013. EIA forecasts average delivered coal prices of $2.36/MMBtu in 2014 and $2.37/MMBtu in 2015.
U.S. Electricity Retail Prices
EIA expects the U.S. residential price of electricity to average 12.3 cents per kilowatthour during 2014, an increase of 1.9% from 2013. Residential electricity prices increase 2.0% during 2015.