A severe heat wave across much of the United States has driven electricity demand to multi-year highs, placing considerable stress on power grids and causing wholesale power prices to surge. Temperatures exceeding 38 degrees Celsius (100 degrees Fahrenheit) have led to increased use of air conditioning, pushing peak electricity loads to 160,560 megawatts in the PJM Interconnection region, which covers 13 states and Washington D.C. Natural gas has supplied 44% of this peak demand, with futures prices rising 2.2% amid expectations of continued high consumption and potential winter price increases to $5 per million British thermal units. The heat wave has also reduced hydropower output and lowered LNG spot demand, prompting greater reliance on thermal coal. Electricity traded volumes in India’s IEX market have risen, reflecting a global trend in energy demand. The surge in power consumption is expected to drive home electricity bills to a 12-year high this summer, with cooling costs significantly impacting household budgets. Analysts warn of ongoing challenges for the Mid-Atlantic grid as another heat dome approaches.