Weather forecast deviation risk measures how much actual temperatures diverge from forecasts. Large deviations trigger unexpected surges or drops in electricity demand, causing price volatility. In 2025 FERC warned that above-normal temperatures, extreme heat waves and uncertain forecasts could tighten generator availability and raise prices. This indicator highlights vulnerability to weather surprises.
Past 3 months | Next 3 months forecast
Looking forward, weather forecast deviation risk is expected to remain elevated due to increasing climate variability and unpredictability. Improved forecasting should gradually reduce risk later in the six-month horizon, but utilities should still plan for continuing spikes caused by unexpected heat waves or cold snaps and maintain flexible procurement strategies
Past 3 months | Next 3 months forecast
Electric Rate Impact: ▲ Electric rates u