Electric Generation Prices Overview
The Natural Gas Electric Generation Price Model attempts to account for the cost to procure and deliver gas to a natural gas-fired electric generator. Electric generation prices include both a commodity and a transportation component. The commodity component is the price of natural gas after production from the well and processing for injection into a nearby utility pipeline. The transportation component is the cost of transporting the gas from the injection point near the production basin to the electric generator for consumption. Energy planners and analysts working for regulators and utilities use the estimated price projection for electricity resource planning, since fuel is a major portion of the overall cost to run natural gas-fired turbines.
Electric Generation Price Projection
The 2025 results, provided below in a Microsoft Excel file, estimate electric generation prices from 2025 through 2050 using the in-house Fossil Gas Commodity Price (FGCP) Projection Model for each case. Interstate transportation rates were updated based on the latest pipeline operator tariff schedules filed as of January 2025. Intrastate transportation rates for Pacific Gas & Electric, Southern California Gas, and San Diego Gas & Electric were also updated using the 2025 California Transportation Rates Model.