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A Note from the Team
As energy prices continue their unpredictable climb, we know our partners and customers are feeling the impact. Whether you’re managing a facility, overseeing energy projects, or supporting clients through upgrades and retrofits, the stakes are getting higher—and so is the complexity.
This issue of The DENT Current focuses on what’s behind the recent spike in energy costs, where things may be heading, and what energy professionals can do to stay ahead. While there’s no one-size-fits-all solution, better data, smarter strategy, and proactive planning are key.
Thanks for continuing to trust DENT Instruments as your partner in navigating the changing energy landscape.
—The DENT Instruments Team
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Volatility is the New Normal
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Energy costs are continuing to climb. According to the U.S. EIA, commercial electricity prices rose 4.8% year-over-year as of June 2025 . In the residential sector, prices are up approximately 7% over the past year and have increased over 30% in the last five years.
Since 2020, average U.S. commercial electricity prices have increased nearly 22%, with no signs of plateauing. Forecasts suggest that rates could reach 17.6¢ per kWh in 2026¹, driven by mounting demand, fuel market volatility, and sweeping infrastructure investments¹.
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For energy professionals, this volatility isn’t just a budgeting headache—it’s a strategic risk. From data centers to school districts, facility managers and engineers are facing a new operational reality: the energy landscape is more dynamic, more complex, and more costly than ever.
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In this issue of The DENT Current, we dig into:
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What’s pushing energy prices up now and into 2026
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Where demand is accelerating across sectors
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What energy managers can do to protect budgets and optimize usage
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Rising energy costs aren’t just about inflation—they’re the result of several powerful forces converging across markets, infrastructure, and policy. Here’s a closer look at the primary drivers shaping today’s energy landscape:
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Natural Gas Market Volatility:
Natural gas prices—central to U.S. power generation—are expected to rise from $3.20 to over $4.30/MMBtu by early 2026. As gas costs climb, electricity prices typically follow, especially in deregulated markets².
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Surging Demand:
Electricity use is accelerating, with commercial demand projected to grow 3–4.5% through 2026. Key factors: AI-driven data centers, building electrification, and a strong industrial rebound⁴.
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Declining Dollar:
As the dollar declines, the price of globally traded commodities like oil and natural gas tends to rise—impacting fuel costs and, by extension, electricity rates. While not always front-page news, currency shifts can quietly amplify pricing pressures across the energy supply chain.
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Infrastructure Strain and Investment:
Utilities are seeking record rate hikes—$29 billion in early 2025 alone—to upgrade aging infrastructure and handle extreme weather. These costs are passed down through rising base rates and new fees⁵.
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Regulatory and Policy Shifts:
Energy policy is pulling in multiple directions. While many states and utilities are investing heavily in clean energy, recent federal actions have slowed or rolled back renewable targets. The result: uncertainty around generation planning, compliance costs, and long-term pricing—especially for large energy users.
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While the recent spike in energy prices has been jarring, most indicators suggest we’re not at the peak yet. Here’s what to watch for heading into 2026:
1. Higher Rates, Again
The average U.S. commercial electricity rate is forecasted to hit 17.6¢/kWh in 2026—a 3.5% increase over 2025. Continued fuel inflation, grid investment, and climate-related demand surges are all contributing to the climb¹.
2. Record-Breaking Demand
U.S. electricity consumption is expected to reach 4,283 billion kWh in 2026, driven by:
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AI and data center expansion
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Electrification of transportation and buildings
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Rebounding industrial activity⁴
This demand surge is already pressuring supply and infrastructure, particularly in fast-growing regions like Texas and the Southeast.
3. Strained Supply Chains
The rush to build new power generation—especially natural gas capacity—has triggered rising construction costs and long lead times. More than 100 GW of new gas-fired projects are planned through 2030, creating competition for equipment, labor, and financing⁶.
4. Policy-Driven Price Instability
From utility rate cases to federal grid policy changes, regulatory uncertainty is feeding price volatility. Energy managers should expect shifting rate structures, evolving demand charges, and more frequent tariff updates in the next 12–24 months.
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What Energy Managers Can Do Now
Research from the U.S. Department of Energy’s Better Buildings program shows that metering and monitoring aren’t just about compliance—they drive measurable energy savings at every stage:
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Installation of Meters (0–2% savings): Even basic metering can influence behavior through increased awareness (the Hawthorne Effect). The ELITEpro XC is a simple way to perform short-term load studies and uncover quick wins.
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Bill Allocation (2.5–5% savings): Assigning costs by department or tenant improves awareness and accountability. PowerScout HD meters deliver the circuit-level data needed for accurate cost allocation and reporting.
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Building Tune-Up & Load Management (5–15% savings): Metering data identifies operational inefficiencies, maintenance needs, and opportunities to shift loads around rate schedules. PowerScout HD + DENTCloud give managers real-time visibility to act.
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How Are We Doing?
At DENT, we’re committed to continually improving how we serve you—from product experience to technical support to long-term reliability. Your feedback helps us do just that.
We invite you to take our quick, two-question Customer Satisfaction Survey to let us know what we’re doing well—and where we can do better.
👉 Share Your Feedback
It only takes a minute, and your insights go directly to our leadership and support teams. Thanks for helping us raise the bar.
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Have a question?
Ask the DENT Sales team or reach out to Technical Support!
Dent Instruments has an exceptional customer success and account management team available to handle any questions.
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For Technical Support:
Our dedicated technical support team is here to help with your troubleshooting and setup needs.
Let us know how we can assist you!
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Need technical updates?
Join our Product Change Notice mailing list.
Stay informed about critical product changes and advancements that continue to drive innovation and performance.
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Visit us at: dentinstruments.com
Call us: 1-541-388-4774
Hours of operation:
Mon – Fri 8am – 5pm PST
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