As we move into spring, it’s a good time to reflect on the challenges and surprises that Winter 2025 brought to the Northeast. From record-setting cold snaps to volatile energy demand, this winter far surpassed what many forecasters anticipated back in the fall of 2024.
What Was Forecasted: A Mild but Uncertain Outlook
Heading into winter, ISO New England’s 2024/2025 Winter Outlook forecasted a milder-than-average winter with moderate peak demand levels for much of the Northeast. The expectation was for temperatures to be above normal, with fewer prolonged cold spells — a forecast that brought some optimism to energy markets wary of extreme volatility.
What Actually Happened: A Winter That Defied Expectations
Despite early-season mildness, January and February 2025 delivered some of the coldest sustained periods with La Niña conditions in place. According to ISO New England, January’s peak demand was at 19,639 MW. For reference, the all-time peak demand currently stands at 28,130 MW during the summer heat wave of August 2006.
In New England, January 2025 is now ranked 5th in the top ten energy demand peaks of the past two decades.
What Made This Winter Unique?
Winter 2025 was notable not just for its cold, but for the duration of extreme weather.
- Multiple back-to-back cold fronts, without the typical mid-winter thaw, strained supply chains and delivery infrastructure.
- The combination of high energy demand, well beyond forecasted levels, and constrained fuel logistics led to regional price spikes and operational challenges across utilities.
- This winter was a reminder of the persistent vulnerabilities of the Northeast energy system during prolonged severe cold, despite ongoing infrastructure improvements.
Natural Gas Market Impacts — And What It Means for You
For businesses relying on natural gas and electricity, Winter 2025 was an important reminder of how market conditions can change rapidly, driving up costs and creating supply uncertainties during extreme cold events. Unless price risk has been proactively managed, this can create an unwelcome surprise.
At Sprague, our team of energy experts monitor trends and provide the tools you need, when you need them, to help manage risk and costs.
How Sprague Supports You in Volatile Markets
Navigating an unpredictable winter like this one takes more than just hoping for mild weather — it requires proactive energy management and trusted expertise. That’s where Sprague’s team makes a difference:
- Customized pricing tools that give you flexibility and control over your energy spend to help you manage market risk through volatile New England demand.
- Market insights from Sprague’s dedicated energy experts, helping you stay informed and better prepared.
- Personalized Account Management to help you meet the energy needs of your industry with the highest level of service.
Whether you’re managing costs for a manufacturing facility, commercial property, or municipality, Sprague provides the tools, strategies, and personal service to help you plan confidently — even in the most challenging winters.
Preparing for What Comes Next
As we reflect on the extreme conditions of this winter, one thing is clear: markets are dynamic, and being prepared is critical. While no one can control the weather, Sprague can help you control how it impacts your bottom line.
If you’re looking to review your energy purchasing strategy, or if this winter raised new questions about managing price risk, reach out to our team. We’re here to help you build a plan — with confidence, insight, and flexibility.
Learn more today and get ahead of what next winter may bring.
