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2022 MULTIFAMILY TRENDS:
TUTILITY MANAGEMENT CHALLENGED
he U.S. energy market is easing into average due to high consumption in June resulting 2022 on the heels of a roller coaster from hot weather. As of December, the U.S. sat about ride, and while pricing is stabilizing at 8% below 2020 storage, and 3% below the five- the outlook continues to present year average.
BY ENERGY VOLATILITY by Tim Blackwell
challenges for multifamily utility management.
Another wrinkle is high export demand from Europe,
China and other nations who are rebuilding their Most eyes remain on natural gas: supplies and tapping into North American inventories.
storage capacity has dramatically fluctuated since 2019 and this year more peaks and valleys are forecast. The build-back from depleted stock early in the pandemic along with other factors are adversely affecting storage, although inventories
leveled somewhat by the end of 2021.
For much of the year, weekly injections into storage fell below expectations. This trend is expected to continue into 2022, according to U.S. Energy Information Administration forecast. Natural gas inventories are projected to fall 2% below the 2017- 21 average from November 2021 to March.
As often is the case, weather is affecting storage supplies. Less natural gas was stockpiled last summer than during the previous five years on
As a result, natural gas pricing has been on a bull run and prices could crack the $100 mark during a frigid winter. However, the 2022 winter forecast is for generally warmer weather, which should shrink demand and bring some relief to natural gas pricing.
The uncertainty is challenging for energy contracts as they come due this year. RealPage Utility Management leaders suggest that apartment operators should lean on the expertise of qualified energy brokers to build a pricing strategy that will secure the best deals.
Tek Chung, RealPage Director of Energy Procurement, says building more lead time into securing energy contracts will help properties better control their utility management spends.
APARTMENT MANAGEMENT MAGAZINE - FEBRUARY 2022 CS-33