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Industry News (290)

THE PAST WEEK SAW COOLER TEMPERATURES AND DOWNWARD TRENDING NATURAL GAS FORWARD CURVES. POWER PRICES WERE ALSO OFF OF THE PRIOR WEEK HI’S. CUSTOMER’S ON VARIABLE RATE ELECTRICITY AND GAS SUPPLY PLANS SHOULD EXPECT HIGHER RATES NEXT MONTH.

Prompt month gas ended the week down 3.7%, settling at $2.75 / mmbtu.  The 12, 24, and 36-month contracts were also down, settling at $2.77; $2.73; and $2.70 / 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 12, 2018 for the week ending July 6, 2018. The overall storage level ended the week at 2,203 MMBtu, a net weekly increase in the system of 51 BCF.  Natural gas storage levels are 19.1% below the 5-year average, and 24.5% 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.  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...

EXTREME HEAT ACROSS MANY DEREGULATED ENERGY MARKETS LAST WEEK CAUSED PEAK DEMAND LEVELS IN VARIOUS ISO LOCATIONS TO REACH 3 YEAR HI’S AND BROUGHT SIGNIFICANT VOLATILITY TO RT AND DA POWER MARKETS. THE RECORD HEAT ALSO BROUGHT POWER OUTAGES TO CA, AZ

Prompt month gas ended the week down 2.3%, settling at $2.86 / mmbtu.  The 12, 24, and 36-month contracts were also down, settling at $2.84; $2.79; and $2.74 / 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 6, 2018 for the week ending June 29, 2018. The overall storage level ended the week at 2,152 MMBtu, a net weekly increase in the system of 78 BCF.  Natural gas storage levels are 18.6% below the 5-year average, and 25.0% 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...

LOTS OF HI HEAT ANTICIPATED THIS UPCOMING WEEK FOR MOST OF THE COUNTRY. DEREGULATION ALLOWS YOU TO CHOOSE YOUR SERVICE PROVIDER BUT OFFERS NO PROTECTION FOR CUSTOMERS ON VARIABLE RATE PLANS. ANTIPATE SIGNIFICANT PRICE VOLATILITY.

Prompt month gas shifted to August 2018 and ended the week fairly flat, settling at $2.92 / mmbtu.  The 12, 24, and 36-month contracts were also flat, settling at $2.89; $2.82; and $2.76 / 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.  Those meters in Texas are anticipated to see significant price volatility in August 2018.

New gas storage levels came out on June 28, 2018 for the week ending June 22, 2018. The overall storage level ended the week at 2,074 MMBtu, a net weekly increase in the system of 66 BCF.  Natural gas storage levels are 19.5% below the 5-year average, and 26.2% 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.

We have initiated our coverage of tracking cooling degree days in various deregulated markets.  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...

THE HIGH TEMPERATURES IN THE EARLY PART OF LAST WEEK CAUSED THE REAL TIME AND DAY AHEAD POWER PRICES TO SPIKE. RESIDENCES AND BUSINESS RELY ON HIGH POWER CONSUMING AIR CONDITIONING UNITS TO KEEP COOL.

Wholesale gas markets were down slightly for the week.  Prompt month gas fell back under the $3.00 technical indicator.  The contract settled at $2.95 / mmbtu.  The 12, 24, and 36-month contracts settled at $2.92; $2.83; and $2.77 / 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.

New gas storage levels came out on June 21, 2018 for the week ending June 15, 2018. The overall storage level ended the week at 2,004 MMBtu, a net weekly increase in the system of 91 BCF.  Natural gas storage levels are 19.9% below the 5-year average, and 27.4% 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.

We have initiated our coverage of tracking cooling degree days in various deregulated markets.  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...

THERE IS A SIGNIFICANT HEAT WAVE SPREADING ACROSS THE COUNTRY STARTING SUNDAY JUNE 17TH. THIS IS THE FIRST ONE OF THE SUMMER SEASON. ANTICIPATE SIGNIFICANT POWER DEMAND TO COOL BUILDINGS AND RESIDENCES.

Prompt month gas settled over $3.00 for the fist time since this past winter’s polar vortex.  The contract settled at $3.02 / mmbtu.  The 12, 24, and 36-month contracts settled at $2.98; $2.86; and $2.79 / mmbtu.  The hot weather currently spreading across the country will mean 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.

New gas storage levels came out on June 14, 2018 for the week ending June 8, 2018. The overall storage level ended the week at 1,913 MMBtu, a net weekly increase in the system of 96 BCF.  Natural gas storage levels are 21.0% below the 5-year average, and 29.1% 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.

We have initiated our coverage of tracking cooling degree days in various deregulated markets.  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...

WHILE SUMMER HAS OFFICIALLY BEGUN, THE HEAT HAS YET TO ARRIVE. THIS MEANS LOW DEMAND FOR BUILDING AND RESIDENT COOLING TECHNOLOGIES, AND BASELOAD ELECTRICITY DEMANDS HAVE NOT YET REQUIRED ANY PEAKING GENERATION.

Prompt month ended the week slightly down, settling at $2.89 / BCF.  The 12, 24, and 36-month contracts dropped slightly for the week, settling at $2.89; $2.80; and $2.75 respectively.  The shape of the natural gas curve and mild temperatures translate to fixed price locking opportunities.  It is a great time to hedge out the upcoming summer market volatility with a trusted ESCO provider.  Allow them to do their job and manage price risk on a customer’s behalf.  Also, I encourage you to take a look at the LTM gas chart.  Be sure to question your ESCO provider if you are seeing material higher rates for your power and gas vs 12 months ago.  The gas curve is down.   Keep in mind that pricing components such as capacity, ancillary charges, and other pass-through charges also change, but the majority of your cost is the commodity itself.  The price of electricity remains closely correlated to the price of natural gas.

New gas storage levels came out on June 7, 2018 for the week ending June 1, 2018. The overall storage level ended the week at 1,817 MMBtu, a net weekly increase in the system of 92 BCF.  Natural gas storage levels are 22.0% below the 5-year average, and 30.5% 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.

We have initiated our coverage of tracking cooling degree days in various deregulated markets.  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...

THE PAST WEEK SAW AVERAGE / NORMAL TEMPERATURES AS MEASURED BY COOLING DEGREE DAYS ACROSS THE DEREGULATED MARKETS WE TRACK. WEEKLY STORAGE LEVELS SAW A 96 BCF INJECTION, BUT MORE WEEKLY INJECTIONS ARE NEEDED TO RECOVER THE LEVELS BACK TO NORMAL.

Prompt month gas shirted to July 2018 and saw a moderate weekly increase, closing at $2.96 / BCF.  The 12, 24, and 36-month contracts dropped slightly for the week, settling at $2.94; $2.84; and $2.79 respectively.  The shape of the natural gas curve and mild temperatures translate to fixed price locking opportunities.  It is a great time to hedge out market volatility with a trusted ESCO provider.  Allow them to do their job and manage price risk on a customer’s behalf.  Also, I encourage you to take a look at the LTM gas chart.  Be sure to question your ESCO provider if you are seeing material higher rates for your power and gas vs 12 months ago. Keep in mind that pricing components such as capacity, ancillary charges, and other pass-through charges also change, but the majority of your cost is the commodity itself.  The price of electricity remains closely correlated to the price of natural gas.

New gas storage levels came out on May 31, 2018 for the week ending May 25, 2018. The overall storage level ended the week at 1,725 MMBtu, a net weekly increase in the system of 96 BCF.  Natural gas storage levels are 22.5% below the 5-year average, and 31.4% 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.

We have initiated our coverage of tracking cooling degree days in various deregulated markets.  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...

SUMMER IS HERE WHICH BRINGS THE START OF WEATHER DRIVEN VOLATILITY. COOLING BUILDINGS BRINGS ONE OF THE YEARS BIGGEST DEMAND PERIODS LEADING TO PRICE INCREASES THAT VARIABLE RATE POWER AND GAS PLANS ARE EXPOSED TO.

Gas was up for the week, with the shorter-term contracts seeing much of the gains.  The Henry Hub spot settled at $2.94 / MMBtu.  The 12, 24, and 36-month forward contracts were also up, settling at $2.97; $2.86, and $2.80 / MMBtu respectively.  The shape of the natural gas curve and mild temperatures translate to fixed price locking opportunities.  It is a great time to hedge out market volatility with a trusted ESCO provider.  Allow them to do their job and manage price risk on a customer’s behalf.  Also, I encourage you to take a look at the LTM gas chart.  Be sure to question your ESCO provider if you are seeing material higher rates for your power and gas vs 12 months ago. Keep in mind that pricing components such as capacity, ancillary charges, and other pass-through charges also change, but the majority of your cost is the commodity itself.  The price of electricity remains closely correlated to the price of natural gas.

New gas storage levels came out on May 24, 2018 for the week ending May 18, 2018. The overall storage level ended the week at 1,629 MMBtu, a net weekly increase in the system of 91 MMBtu.  Natural gas storage levels are 23.4% below the 5-year average, and 33.0% 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.

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

Read more...

WE HAD THE FIRST WEEK OF TRIPLE DIGIT NATURAL GAS STORAGE INJECTIONS OF THE SHOULDER SEASON. MORE BIG WEEKLY INCREASES ARE NEEDED TO RAMP UP STORAGE IN ANTICIPATION OF SUMMER PRICE VOLATILITY.

Gas was up marginally for the week, with the shorter-term contracts seeing much of the gains.  The henry hub spot settled at $2.85 / MMBtu.  The 12, 24, and 36-month forward contracts were also modestly up, settling at $2.89; $2.80, and $2.76 / MMBtu respectively.  The shape of the natural gas curve and mild temperatures translate to fixed price locking opportunities.  It is a great time to hedge out market volatility with a trusted ESCO provider.  Allow them to do their job and manage price risk on a customer’s behalf.  Also, I encourage you to take a look at the LTM gas chart.  Be sure to question your ESCO provider if you are seeing material higher rates for your power and gas vs 12 months ago. Keep in mind that pricing components such as capacity, ancillary charges, and other pass-through charges also change, but the majority of your cost is the commodity itself.  The price of electricity remains closely correlated to the price of natural gas.

New gas storage levels came out on May 17, 2018 for the week ending May 11, 2018. The overall storage level ended the week at 1,538 MMBtu, a much-needed net weekly increase in the system of 106 MMBtu.  Natural gas storage levels are 24.6% below the 5-year average, and 34.8% 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.

Read more...

SHOULDER SEASON CONTINUES FOR ANOTHER 2 WEEKS. THERE IS NOT MUCH TIME LEFT FOR RESIDENTIAL AND COMMERCIAL RETAIL CUSTOMERS TO HEDGE OUT SUMMER VOLATILITY RISK USING FIXED PRICE POWER AND NATURAL GAS CONTRACTS.

Gas was up marginally for the week, with the shorter-term contracts seeing much of the gains.  The henry hub spot settled at $2.81 / MMBtu.  The 12, 24, and 36-month forward contracts were modestly up, settling at $2.84; $2.76, and $2.73 / MMBtu respectively.  The shape of the natural gas curve and mild temperatures translate to fixed price locking opportunities.  It is a great time to hedge out market volatility with a trusted ESCO provider.  Allow them to do their job and manage price risk on a customer’s behalf.  Also, I encourage you to take a look at the LTM gas chart.  Be sure to question your ESCO provider if you are seeing material higher rates for your power and gas vs 12 months ago.

New gas storage levels came out on May 10, 2018 for the week ending May 4, 2018. The overall storage level ended the week at 1,432 MMBtu, a much-needed net weekly increase in the system of 89 MMBtu.  Natural gas storage levels are 26.6% below the 5-year average, and 37.6% 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.

Read more...
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