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UNAVAILABLE NATURAL GAS COMBINED WITH INADEQUATE BASIC WEATHER FREEZING MAINTENANCE LED TO THE CHAOS IN ERCOT PRICING.

Prompt month natural gas storage shifted to April 2021 and settled the week at $2.77 / mmbtu down 10% for the week. The 12, 24, and 36-month contracts were also down, settling at $2.96; $2.77; and $2.68 / MMBtu respectively.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on February 25, 2021 for the week ending February 19, 2021.  The overall storage level ended the week has now dropped below 2,000 technical indicators at 1,943 / MMBtu, a big cold weather driven decrease in the system of 338 MMBtu.  Natural gas storage levels are 7.7% below the 5-year average, and are now 13.3% under the levels seen 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

Heating Degree Days have declined back to their weekly averages.  When it is cold, demand for heating fuels such as natural gas spikes.  If supply is not sufficient to match demand, bad things happen to wholesale and retail supply.  We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas and the effects on the forward curve during the cold winter season.  See our bar charts to track your specific location.

The situation in Texas is sad, and could have been avoided.  Extreme whether will return and markets should learn from past mistakes but they rarely do.  People use coils to heat their driveways and tiles all the time.  It is shocking for generation assets to shut down because their equipment freezes.

Short holiday trading week saw the prompt month natural gas contract come up 5.4%, settling at $3.07 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $3.12; $2.89; and $2.77 / MMBtu respectively. Extreme weather has caused chaos in Texas, with wholesale hourly prices shooting up over $3,000 / mwh and some customers reporting that their monthly power bills are over $7,000!  When you are unable to get fuel to generators, bad things happen in the markets.  Customers on variable rate plans pay the price for these extreme market conditions.  Would it not be easier to just lock your rate for term power and gas supply?  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on February 18, 2021 for the week ending February 12, 2021.  The overall storage level ended the week well under the 3.000 technical indicator at 2,281 / MMBtu, a big cold weather driven decrease in the system of 237 MMBtu.  Natural gas storage levels are 2.6% above the 5-year average, and are now 4.4% under the levels seen 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

Heating Degree Days are starting to spike across the country.  When it is cold, demand for heating fuels such as natural gas spikes.  If supply is not sufficient to match demand, bad things happen to wholesale and retail supply.  We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas and the effects on the forward curve during the cold winter season.  See our bar charts to track your specific location.

The prompt month natural gas contract was up 1.7% for the trading week, settling at $2.91 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $3.03; $2.84; and $2.74 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on February 11, 2021 for the week ending February 5, 2021.  The overall storage level ended the week well under the 3.000 technical indicator at 2,518 / MMBtu, a big cold weather driven decrease in the system of 171 MMBtu.  Natural gas storage levels are 6.4% above the 5-year average, and are now under the levels seen 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

Heating Degree Days are starting to spike across the country.  When it is cold, demand for heating fuels such as natural gas spikes.  If supply is not sufficient to match demand, bad things happen to wholesale and retail supply.  We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas and the effects on the forward curve during the cold winter season.  See our bar charts to track your specific location.

The prompt month natural gas contract was up 11.7% for the trading week, settling at $2.86 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $3.00; $2.82; and $2.72 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on February 4, 2021 for the week ending January 29, 2021.  The overall storage level ended the week under the 3.000 technical indicator at 2,689 / MMBtu, a big cold weather driven decrease in the system of 192 MMBtu.  Natural gas storage levels are 7.9% above the 5-year average, and 1.5% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas and the effects on the forward curve during the cold winter season.  See our bar charts to track your specific location.

The prompt month natural gas contract was up 4.8% for the trading week, settling at $2.56 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $2.79; $2.70; and $2.64 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on January 28, 2021 for the week ending January 22, 2021.  The overall storage level ended the week under the 3.000 technical indicator at 2,881 / MMBtu, a big cold weather driven decrease in the system of 128 MMBtu.  Natural gas storage levels are 9.3% above the 5-year average, and 2.8% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

The prompt month natural gas contract was down 11% for the short holiday trading week, settling at $2.45 / MMBtu.  The 12, 24, and 36-month contracts were also down, settling at $2.68; $2.65; and $2.62 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on January 22, 2021 for the week ending January 15, 2021.  The overall storage level ended the week at 3,099 / MMBtu, a big cold weather driven decrease in the system of 187 MMBtu.  Natural gas storage levels are 7.0% above the 5-year average, and 1.2% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are continuing to track the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

Polar Vortex is defined as a persistent, large-scale, upper-level low-pressure area, less than 1,000 kilometers in diameter, that rotates counter-clockwise at the North Pole and clockwise at the South Pole, i.e., both polar vortices rotate eastward around the poles. The vortices weaken and strengthen from year to year.  It is not uncommon to the market volatility caused by such an event take down and bankrupt an energy supply company.  If a customer is on a variable rate power or gas supply plan, they expose themselves to the same level of risk.

The prompt month contract was up slightly for the week, settling at $2.74 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $2.85; $2.76; and $2.68 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on January 14, 2021 for the week ending January 8, 2021.  The overall storage level ended the week at 3,196 / MMBtu, a big cold weather driven decrease in the system of 134 MMBtu.  Natural gas storage levels are 7.3% above the 5-year average, and 4.1% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are now tracking the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

Sunday, 10 January 2021 01:39

THE POLAR VORTEX MAY BE ON ITS WAY

RATE LOCK NOW, YOU DO NOT WANT TO BE ON THE WRONG SIDE OF POWER AND NATURAL GAS VOLATILITY CURVES.  WEATHER AND THE EFFECT IT HAS ON COMMODITY PRICES IS WELL DOCUMENTED, AND NOT SOMETHING YOU WANT TO HAVE EXPOSURE TO.

Polar Vortex is defined as a persistent, large-scale, upper-level low-pressure area, less than 1,000 kilometers in diameter, that rotates counter-clockwise at the North Pole and clockwise at the South Pole, i.e., both polar vortices rotate eastward around the poles. The vortices weaken and strengthen from year to year.  It is not uncommon to the market volatility caused by such an event take down and bankrupt an energy supply company.  If a customer is on a variable rate power or gas supply plan, they expose themselves to the same level of risk.

Welcome to the first week of trading in 2021!  The prompt month contract was up 6.3% for the week, settling at $2.70 / MMBtu.  The 12, 24, and 36-month contracts were also up, settling at $2.81; $2.71; and $2.64 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on January 7, 2021 for the week ending January 1, 2021.  The overall storage level ended the week at 3,330 / MMBtu, a big cold weather driven decrease in the system of 130 MMBtu.  Natural gas storage levels are 6.4% above the 5-year average, and 4.3% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are now tracking the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

Short trading week with the New Year’s holiday was relatively flat with the prompt month settling at $2.54 / MMBtu.  The 12, 24, and 36-month contracts settled at $2.69; $2.63; and $2.57 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on December 31, 2020 for the week ending December 25, 2020.  The overall storage level ended the week at 3,460 / MMBtu, a big cold weather driven decrease in the system of 114 MMBtu.  Natural gas storage levels are 6.3% above the 5-year average, and 7.8% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are now tracking the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

Short trading week with the Christmas holiday saw declines across the curve with the prompt month trading down 6.7%, settling at $2.52 / MMBtu.  The 12, 24, and 36-month contracts were down, settling at $2.63; $2.61; and $2.56 / MMBtu respectively.  Covid 19 continues to crush demand for both power and natural gas.  This is for the liquid Henry Hub delivery point.  The forward natural gas curve signifies a great time to lock in your retail power and gas prices for longer stretches of time.  Spreads between the short term and long-term natural gas contracts are compelling and continue to support the decision of locking your power and gas rates for longer stretches of time.  Allow your ESCO supply company to work for your business or residence, and manage market volatility with fixed price contracts for term length.  Variable rate contracts do not offer price protection (or value) in my own opinion.

New gas storage levels came out on December 23, 2020 for the week ending December 18, 2020.  The overall storage level ended the week at 3,574 / MMBtu, a big cold weather driven decrease in the system of 152 MMBtu.  Natural gas storage levels are 6.5% above the 5-year average, and 8.4% above where they were 12 months ago.  Keep in mind that this is storage in the system.  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 that are not necessary tied to the prompt month gas trading levels (keep these market movements in mind when evaluating comparable billing periods!).  While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  As a customer, you have the choice to decide who holds the price volatility risk.  Protect yourselves with fixed price contracts.  Those customers who elect a variable rate plan are 100% exposed to price volatility driven by weather and other market conditions.  Allow your supply company to do their job and manage the volatility by offering you a fixed price contract.

Attractive opportunities are in the market for customers to hedge out price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.  This is not a risk that customers should be exposed to.

We are now tracking the heating degree days for some of the larger deregulated retail supply markets.  Heating degree days are a great indicator of demand for natural gas moving inter the cold winter season.  See our bar charts to track your specific location.

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