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Items filtered by date: February 2021

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.

Published in Industry News

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.

Published in Industry News

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.

Published in Industry News

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.

Published in Industry News

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