Energy Demand and Prices Projected to Remain Uncertain

Liz Gullett

May 28, 2021

The Michigan Public Service Commission released their Energy Appraisal Summer Outlook for 2021 this week. They are anticipating higher gas prices this summer as restrictions related to COVID-19 are eased and economic activity rebounds. Overall projections on energy supply and demand remain uncertain as Michigan continues to adjust to the impacts of the pandemic.

Some of the key findings from the report include:

- There was a 5% reduction in electricity sales in 2020 from the prior year. Industrial sectors had a 16% decline, while residential electrical use increased by 6.6%. This is attributed to residents shifting to working from home.
- Residential natural gas demand declined in 2020 by 6%. While the numbers haven’t yet been released, they are anticipating consumption will also be down for the industrial and commercial sectors.
- Gasoline demand in 2020 declined 15.2% from 2019. Demand is expected to rebound in 2021 due to the lifting of restrictions.

To read the full report, please click here.

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