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Items filtered by date: May 2019

The prompt month contract ended the week down slightly, settling at $2.60 / MMBtu.  The 12, 24, and 36-month contracts were also down, settling at $2.71; $2.70; and $2.69 / MMBtu respectively.  This is all driven by low demand due to stable spring temperatures in the Henry Hub service territory.  Local markets can see big volatility swings driven by unseasonable temperatures in the weather patterns, but we have not seen any of this kind of activity to date.  While wholesale power and gas markets are stable, there are still significant benefits to rate locking power and gas retail supply contracts.  Allow your ESCO supply company to work for your service, and manage market volatility with fixed price contracts.  Variable rate contracts do not offer price protection (or value) in my own humble opinion.

New gas storage levels came out on May 23, 2019 for the week ending May 17, 2019. The overall storage level ended the week at 1,753 / MMBtu, an increase in the system of 100 MMBtu.  Natural gas storage levels are 13.5% below the 5-year average, and 8.5% above 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!). While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  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 price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.

Weekly changes in cooling degree days have only registered positive numbers in Houston and Washington, and now Metropolitan New York City area.  All locations remain under the 5-year average which is adding stability to the local markets.  Great time to rate-lock power and gas supply for retail customers.

Hurricane season will begin June 1 and has the potential to bring regional devastation and additional power and gas price volatility.  The Atlantic region is currently disturbance free but we will keep you posted with weekly activity reports until November.  The best hedge continues to be a fixed price power and gas products for residential and commercial customers in deregulated markets.

Published in Industry News

With Memorial Day Weekend just one week away, deregulated markets have yet to see any impacts from increased power and gas demand due to summer weather conditions.

The prompt month contract ended the week unchanged, settling at $2.63 / MMBtu.  The 12, 24, and 36-month contracts were also flat, settling at $2.77; $2.74; and $2.71 / MMBtu respectively.  This is all driven by low demand due to stable spring temperatures in the Henry Hub service territory.  Local markets can see big volatility swings driven by unseasonable temperatures in the weather patterns, but we have not seen any of this kind of activity to date.  While wholesale power and gas markets are stable, there are still significant benefits to rate locking power and gas retail supply contracts.  Allow your ESCO supply company to work for your service, and manage market volatility with fixed price contracts.  Variable rate contracts do not offer price protection (or value) in my own humble opinion.

New gas storage levels came out on May 16, 2019 for the week ending May 10, 2019. The overall storage level ended the week at 1,653 / MMBtu, an increase in the system of 108 MMBtu.  Natural gas storage levels are 14.7% below the 5-year average, and 8.5% above 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!). While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  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 price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.

Weekly changes in cooling degree days have only registered positive numbers in Houston and Washington.  All locations remain under the 5-year average which is adding stability to the local markets.  Great time to rate-lock power and gas supply for retail customers.

Published in Industry News

Prompt month contract ended the week up modestly, settling at $2.62 / MMBtu.  The 12, 24, and 36-month contracts were also slightly up, settling at $2.75; $2.72; and $2.69 / MMBtu respectively.  This is all driven by low demand due to stable spring temperatures in the Henry Hub service territory.  Local markets can see big volatility swings driven by unseasonable temperatures in the weather patterns, but we have not seen any of this kind of activity to date.  While wholesale power and gas markets are stable, there are still significant benefits to rate locking power and gas retail supply contracts.  Allow your ESCO supply company to work for your service, and manage market volatility with fixed price contracts.  Variable rate contracts do not offer price protection (or value) in my own humble opinion.

New gas storage levels came out on May 9, 2019 for the week ending May 3, 2019. The overall storage level ended the week at 1,547 / MMBtu, an increase in the system of 85 MMBtu.  Natural gas storage levels are 16.4% below the 5-year average, and 9.0% above 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!). While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  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 price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.

Weekly changes in heating degree days have only registered positive numbers in Houston and Washington.  All locations remain under the 5-year average which is adding stability to the local markets.  Great time to rate-lock power and gas supply for retail customers.

Published in Industry News

Prompt month contract ended the week flat, settling at $2.57 / MMBtu.  The 12, 24, and 36-month contracts were also unchanged, settling at $2.70; $2.68; and $2.67 / MMBtu respectively.  This is all driven by low demand due to stable spring temperatures in the Henry Hub service territory.  Local markets can see big volatility swings driven by unseasonable temperatures in the weather patterns, but we have not seen any of this kind of activity to date.  While wholesale power and gas markets are stable, there are still significant benefits to rate locking power and gas retail supply contracts.  Allow your ESCO supply company to work for your service, and manage market volatility with fixed price contracts.  Variable rate contracts do not offer price protection (or value) in my own humble opinion.

New gas storage levels came out on May 2, 2019 for the week ending April 26, 2019. The overall storage level ended the week at 1,462 / MMBtu, a much-needed increase in the system of 123 MMBtu.  Natural gas storage levels are 17.8% below the 5-year average, and 9.6% 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!). While pass through components such as capacity and ancillary services costs have come up, the commodity itself remains in check.  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 price volatility.  Keep the risk where it belongs, with your well-seasoned energy supply partner.

We will start our regional coverage of local heating degree days, and will continue coverage until the summer volatility season ends.  Not much activity to show as temperatures remain mild across deregulated power markets that we currently track.

Published in Industry News

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