Some things can be expected, like travel delays and high gas prices on Memorial Day weekend. Add to that list, hot weather in summer and a spike in electricity as more homes turn on their air conditioners.

A recent report from the Federal Energy Regulatory Commission (FERC) confirms that summer 2024 will be no exception. On May 23, FERC released its 2024 Summer Energy Market and Electric Reliability Assessment. It is an annual report from staff to the Commission.

The report makes several key findings that offer a preview of what energy markets will be like this summer.

On the demand side, the report cites data from the U.S. Energy Information Administration, which projects the total demand load from the continental U.S. to reach 62.1 terawatt-hours. This will represent a 2.7% increase from the summer of 2023 and a 4.4% increase from the average of the past five summers.

The report attributes this increase to several factors. First, it cites forecasts from the National Oceanic and Atmospheric Administration that temperatures will be above normal for most of the United States this summer.

Economic growth, and in particular, the construction of new data centers in many regions of the country will also contribute significantly to an increase in demand.

On the other hand, FERC staff is confident that the nation’s infrastructure will be able to handle the increase in demand, and customers will not necessarily see a spike in prices. According to the report, total net summer capacity is expected to increase from 1,167 gigawatts (GW) in summer 2023 to 1,207 GW by September 2024. Most capacity additions are expected to come from solar and wind resources, and most retirements will come from coal resources.

New transmission infrastructure will also help the country meet rising demand. The report notes that nearly 2,000 miles of Bulk Power System transmission lines are either expected to be completed by the end of summer 2024 or already entered into service this year.

Finally, customers will not be adversely affected. According to the FERC report, “much of the nation” is forecast to see electricity prices this summer that are similar to, or even slightly lower than, those seen in summer 2023. The Pacific Northwest, the Southwest and CAISO are all expected to experience declines in electricity prices.