Commercial Energy Intelligence
October 5, 2026

Rate Movements This Week

This week, commercial electricity rates are showing a slight upward trend across several regions, notably in the PJM Mid-Atlantic where rates have increased by 3% due to rising natural gas prices, which are up 5% week-over-week. In California, PG&E rates remain relatively flat as grid demand stabilizes, while ERCOT Texas sees a minor decline of 1% as cooler weather reduces air conditioning load. Overall, the market is reacting to fluctuations in natural gas supply and demand, alongside seasonal shifts in energy consumption patterns.

Deadlines & Opportunities

Attention retail operators: the Section 179D tax deduction deadline is fast approaching on June 30, 2026, for projects completed in 2025, allowing for deductions up to $5 per square foot for energy-efficient improvements. Additionally, the ITC bonus adder for solar projects is set to expire at the end of this year, offering an extra 10% for projects that meet specific criteria. Now is the time to assess your energy efficiency projects and capitalize on these financial incentives before they close.

Deep Dive: Retail Building Optimization

Retail buildings typically consume around 15 kWh/sqft annually, with HVAC systems and lighting being the largest contributors to energy waste. Common inefficiencies include outdated lighting technologies and HVAC systems operating on inefficient schedules, leading to potential savings of 20-30% through upgrades. Implementing LED lighting can save up to 50% on lighting costs, while optimizing HVAC controls can yield additional savings of 10-15%. Utilizing ENERGY STAR benchmarks can help identify areas for improvement and set efficiency targets.

Rate Lock Recommendations

This week, energy procurement strategies should lean towards locking in fixed-rate contracts, particularly in the Northeast and PJM regions where rates are expected to rise. The forward curve indicates a 2-3% increase over the next 12 months, driven by anticipated demand increases. In contrast, ERCOT Texas may offer more favorable spot market opportunities due to current price dips, making it a good week for variable rate options in that region.

By the Numbers

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