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SUMMER PRICE VOLATILITY SEASON HAS ENDED AND WE ARE NOW IN A SHOULDER PERIOD. ANTICIPATE WEEKLY INFLOWS OF NATURAL GAS INTO THE STORAGE SYSTEM AS WE HEAD INTO THE HIGH DEMAND WINTER SEASON. GREAT TIME TO HEDGE OUT WINTER VOLATILITY WITH FIXED PRICE

The past week saw increases in the wholesale natural gas curve across all terms.  Prompt month settled at $2.98 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.83; $2.75; and $2.70 / MMBtu.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The curve continues to display a well-established contango shape, indicating buying opportunities for those customers electing to lock in rates for longer terms (both power and gas).

New gas storage levels came out on September 20, 2018 for the week ending September 14, 2018. The overall storage level ended the week at 2,722 MMBtu, a net weekly increase in the system of 86 BCF.  Natural gas storage levels are 17.7% below the 5-year average, and 19.8% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Attractive opportunities are in the market for customers to hedge out the upcoming winter volatility season with fixed price contracts.

Read more...

THOUGHTS AND PRAYERS (AND DONATIONS) TO ALL WHO HAVE BEEN EFFECTED BY HURRICANE FLORENCE. THANK YOU TO ALL OF THE FIRST RESPONDERS.

The past week saw a flat movement with the prompt month and forward wholesale natural gas markets.  Prompt month settled at $2.77 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.72; $2.68; and $2.65 / MMBtu.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on September 13, 2018 for the week ending September 7, 2018. The overall storage level ended the week at 2,636 MMBtu, a net weekly increase in the system of 69 BCF.  Natural gas storage levels are 18.4% below the 5-year average, and 20.1% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

The summer season has ended.  We definitely saw an elevation in cooling degree days this season when compared to comparable weekly periods.  The elevated cooling degree days led to price volatility in the RT and DA hourly price intervals across all deregulated markets.  Those customers in fixed rate plans were well protected, regardless of what their rate turned out to be.  It all depends on when you choose to lock.  Locking during the shoulder seasons, which occur between the high demand summer and winter periods is a great strategy.  Those customers who elected to float their rates with variable price plans were fully exposed to the volatile wholesale markets.

Attractive opportunities are in the market for customers to hedge out the upcoming winter volatility season with fixed price contracts.

Read more...

SUMMER VOLATILITY SEASON HAS PASSED WITH CUSTOMERS ON VARIABLE RATE CONTRACTS BEARING THAT RISK. HURRICANE SEASON CONTINUES UNTIL NOVEMBER. NATURAL GAS STORAGE LEVELS REMAIN BELOW THE 5 YEAR AVERAGE.

The past week saw a decline with the prompt month and forward wholesale natural gas markets.  Prompt month was off 4.8% settling at $2.78 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.73; $2.68; and $2.64 / MMBtu.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on September 6, 2018 for the week ending August 31, 2018. The overall storage level ended the week at 2,568 MMBtu, a net weekly increase in the system of 63 BCF.  Natural gas storage levels are 18.7% below the 5-year average, and 20.0% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

NYC WAS HOT THIS WEEK, CAUSING ZONE J RT AND DA POWER PRICES TO EXCEED $650 / MWH DURING SOME TIME INTERVALS. HOUSTON COOLED DOWN, AND WHOLESALE GAS REMAINED UNDER $3.00 / MMBTU.

The past week did not see movement in wholesale natural gas forward or spot markets.  Prompt month gas settled at $2.92 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.84; $2.75; and $2.69 / MMBtu.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on August 30, 2018 for the week ending August 24, 2018. The overall storage level ended the week at 2,505 MMBtu, a net weekly increase in the system of 70 BCF.  Natural gas storage levels are 19.0% below the 5-year average, and 20.5% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

HOUSTON COOLING DEGREE CHARTS? OH THAT’S RIGHT, WEATHER STATIONS IN HOUSTON WERE KNOCKED OFFLINE THIS TIME LAST YEAR.

The past week did not see movement in wholesale natural gas forward or spot markets.  Prompt month gas settled at $2.92 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.87; $2.79; and $2.72 / MMBtu.  Cooling degree days created a telling story.  Weather volatility risk appears to have subsided.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on August 23, 2018 for the week ending August 17, 2018. The overall storage level ended the week at 2,435 MMBtu, a net weekly increase in the system of 48 BCF.  Natural gas storage levels are 19.7% below the 5-year average, and 21.9% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, cooling degree days came well off historical trends for this week.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

THREE WEEKS LEFT IN THE HIGH-RISK SUMMER SEASON BEFORE COOLING DEMAND SUBSIDES UNTIL HEATING DEMAND BEGINS. WHILE THE SEASONABLY HIGH TEMPERATURES HAS CAUSED VOLATILITY IN THE RT AND DA WHOLESALE POWER MARKETS, ISOs HAVE PERFORMED WELL.

The past week did not see movement in wholesale natural gas forward or spot markets.  Prompt month gas settled at $2.95 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.90; $2.81; and $2.74 / MMBtu.  Cooling degree days are in line with historical averages.  Anticipate that peaking generation units will likely be called upon to serve the higher power demand brought on by increased air conditioning technologies.  This will almost certainly lead to elevated market heat rates and increased electricity and natural gas costs for all customers who have not elected to lock their commodity costs with fixed price contracts.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on August 16, 2018 for the week ending August 10, 2018. The overall storage level ended the week at 2,387 MMBtu, a net weekly increase in the system of 33 BCF.  Natural gas storage levels are 20.0% below the 5-year average, and 22.3% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, this summer has been a hot one throughout the country vs comparable periods.  Increased cooling degree days leads to increased demand for electricity, which needs to be met with less efficient peaking power generation facilities.  That causes price increases in your local market.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

A QUICK EVALUATION OF COOLING DEGREE DAYS IN YOUR LOCAL MARKET SHOULD DEMONSTRATE THAT THE SUMMER SEASON TEMPERATURES HAVE BEEN ELEVATED. ERCOT AND NYISO HAVE CERTAINLY SEEN ELEVATED POWER PRICES AS A RESULT IN THE DA AND RT MARKET.

The past week saw upticks across all terms in the natural gas futures market.  Prompt month gas settled at $2.94 / mmbtu.  The 12, 24, and 36-month contracts settled at $2.89; $2.80; and $2.73 / mmbtu.  Cooling degree days are in line with historical averages.  Anticipate that peaking generation units will likely be called upon to serve the higher power demand brought on by increased air conditioning technologies.  This will almost certainly lead to elevated market heat rates and increased electricity and natural gas costs for all customers who have not elected to lock their commodity costs with fixed price contracts.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on August 9, 2018 for the week ending August 3, 2018. The overall storage level ended the week at 2,354 MMBtu, a net weekly increase in the system of 46 BCF.  Natural gas storage levels are 19.5% below the 5-year average, and 22.2% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, this summer has been a hot one throughout the country vs comparable periods.  Increased cooling degree days leads to increased demand for electricity, which needs to be met with less efficient peaking power generation facilities.  That causes price increases in your local market.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

WHOLESALE POWER AND GAS PRICE VOLATILITY; AND HURRICANE STORM RISK HAVE BOTH BEEN IN CHECK THIS SUMMER SEASON. THERE HAVE BEEN SOME PRICE SPIKES, AND CUSTOMERS ON FIXED RATE PLANS ARE APPROPRIATELY HEDGED.

Prompt month gas ended flat for the week, settling at $2.85 / mmbtu.  The 12, 24, and 36-month contracts were also flat, settling at $2.82; $2.74; and $2.69 / mmbtu.  Cooling degree days are in line with historical averages.  Anticipate that peaking generation units will likely be called upon to serve the higher power demand brought on by increased air conditioning technologies.  This will almost certainly lead to elevated market heat rates and increased electricity and natural gas costs for all customers who have not elected to lock their commodity costs with fixed price contracts.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on August 2, 2018 for the week ending July 27, 2018. The overall storage level ended the week at 2,308 MMBtu, a net weekly increase in the system of 35 BCF.  Natural gas storage levels are 19.7% below the 5-year average, and 23.0% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, this summer has been a hot one throughout the country vs comparable periods.  Increased cooling degree days leads to increased demand for electricity, which needs to be met with less efficient peaking power generation facilities.  That causes price increases in your local market.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

INTENSE HEAT FROM BOTH THE SUMMER WEATHER AND WILDFIRES HAD THE WEST COAST COOKING, WHILE POWER AND GAS MARKETS OPEN TO RETAIL COMPETITION SAW COOLING DEGREE DAYS IN LINE TO SLIGHTLY ELEVATED SEASONAL PATTERNS. WEATHER LEADS TO PRICE VOLATILITY.

Prompt month gas ended the up, settling at $2.82 / mmbtu.  The 12, 24, and 36-month contracts were also up, settling at $2.80; $2.75; and $2.70 / mmbtu.  Cooling degree days are in line with historical averages.  Anticipate that peaking generation units will likely be called upon to serve the higher power demand brought on by increased air conditioning technologies.  This will almost certainly lead to elevated market heat rates and increased electricity and natural gas costs for all customers who have not elected to lock their commodity costs with fixed price contracts.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on July 26, 2018 for the week ending July 20, 2018. The overall storage level ended the week at 2,273 MMBtu, a net weekly increase in the system of 24 BCF.  Natural gas storage levels are 19.7% below the 5-year average, and 23.7% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, this summer has been a hot one throughout the country vs comparable periods.  Increased cooling degree days leads to increased demand for electricity, which needs to be met with less efficient peaking power generation facilities.  That causes price increases in your local market.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...

WEATHER REMAINS IN CHECK, NOT CAUSING UNANTICIPATED SPIKES IN REAL TIME AND DAY AHEAD WHOLESALE (AND RETAIL) POWER PRICES. IT IS A COMFORTABLE 70 DEGREE DAY AT ROAD AMERICA CAR RACE WEEKEND IN WISCONSIN!

Prompt month gas ended the week flat, settling at $2.76 / mmbtu.  The 12, 24, and 36-month contracts were down slightly, settling at $2.76; $2.71; and $2.66 / mmbtu.  Cooling degree days are in line with historical averages but we have only just begun the high volatility summer season.  Anticipate that peaking generation units will likely be called upon to serve the higher power demand brought on by increased air conditioning technologies.  This will almost certainly lead to elevated market heat rates and increased electricity and natural gas costs for all customers who have not elected to lock their commodity costs with fixed price contracts.  Keep in mind that the above gas prices are for the benchmark Henry Hub Index.  The hot seasonal weather often leads to significant volatility in the basis difference between Henry Hub and your local gas index.

New gas storage levels came out on July 19, 2018 for the week ending July 13, 2018. The overall storage level ended the week at 2,249 MMBtu, a net weekly increase in the system of 46 BCF.  Natural gas storage levels are 19.2% below the 5-year average, and 24.0% below where they were 12 months ago.  Keep in mind that this is storage in the system.  As you can see from the charts, the storage levels are markedly below historical averages, but there are still ample supplies of natural gas in the ground that has yet to be tapped by producers. 

Variable rate plans are meant to be pegged to an index (keep these market movements in mind when evaluating comparable billing periods!). The low-price environment continues to present a great opportunity for commercial and residential customers to lock in power and gas rate plans for the next 12-month period and beyond.

Have a look at our cooling degree bar charts for your respective local markets.  We track the weekly results over a 5-year period.  As you can see, this summer has been a hot one throughout the country vs comparable periods.  Increased cooling degree days leads to increased demand for electricity, which needs to be met with less efficient peaking power generation facilities.  That causes price increases in your local market.  You the customer have the choice of whether or not you want to accept that volatility through a variable rate contract or have your supply company manage that risk on your behalf.  Another point to consider, when you accept a variable rate for your home or business, your rate is set at the discretion of your supply company.  In other words, you have zero price protection, and are charged whatever the rate is your supply company wants to set irrespective of market influences.  Cooling degree days is the benchmark indicator for natural gas demand, which is a great correlation to power prices in your local market.  The more natural gas required to produce the mwh needed to cool buildings and residences, the more volatility in the wholesale and retail markets customers can expect to see.

Attractive opportunities are in the market for customers to hedge out the summer volatility season with fixed price contracts.

Read more...
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