February 6, 2026

February Pricing – Understand the Recent Spike in Electricity Prices

Chart Description: Solid lines reflect current ISO market prices (PJM and MISO), while dotted lines show Realgy’s settlement costs, which lag due to settlement timing.
Realgy purchases power in the month it is incurred, while utilities reconcile wholesale costs later and pass them through over time to minimize rate shock.

 

Weather plays a significant role in electricity pricing. In early February, the wholesale electricity market experienced a sharp but short-lived price spike. While extreme weather was a major driver, several additional factors contributed to the increase.

What Caused the Spike?

Extreme Winter Weather

Cold temperatures across the Midwest and Mid-Atlantic significantly increased electricity demand as homes and businesses relied more heavily on heating systems.

Reduced Reserve Power

Independent System Operators (ISOs) maintain reserve generation to support unexpected increases in demand. During this period, reserve power was lower than normal, limiting the system’s ability to respond to higher load.

Aging Generation Infrastructure

Older Coal Plants that were originally scheduled to retire have now been declared national security and required to remain open. These coal plants break down frequently and are costly to fix, leading to tightened supply during peak demand periods.

Seasonal Maintenance Outages

Winter is a common time for generator maintenance. With fewer generators available and higher demand, price spikes will ensue.

 

What’s Next?

Wholesale pricing has already started to stabilize and trend downward. Current projections indicate march pricing should return closer to January levels.

Utilities such as ComEd, Ameren, And MEC purchase power from the wholesale market and pass these costs through customers with a delay.

At Realgy Energy, we closely monitor the wholesale market and adjust pricing proactively to reflect changing conditions. Temporary price adjustments made for mid-February were a direct response to these market dynamics and were designed to protect long-term stability for our customers.

We remain committed to transparency and will continue to track market trends closely to provide competitive and reliable energy solutions.

 

Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.

Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations. Soon to be 12 with the inclusion of Highland Park newest recreation center West Ridge Center – New Community Recreation Facility Coming in 2026 | Park District of Highland Park

Additional Information:

The US Electrical Grid is Stressed by the Cold Weather