World Energy

Daily Update by Melissa Depanian

2013-05-16T15:28:31Z

Natural gas prices finished up 4.6 cents at $4.07/MMBtu. Weather forecasts continue to point to relatively mild temperatures for the six to ten day period with the majority of the country expected to see average temperatures.

The U.S Energy Administration Storage Report, released at 10:30 am, was estimated by analysts to show a build within a range from 84 Bcf to 106 Bcf with a consensus near a build of 95 Bcf. The EIA reports a 99 Bcf injection into storage for the week of ended May 10th, 2013. This figure compared to an 83 Bcf five year average injection and a 65 Bcf injection the same week last year.

The front month contract is last seen trading down 1.18 cents at $3.95/MMBtu.

Want to learn more? Review our Technical, Fundamental, and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

Fundamental Analysis by Melissa Depanian

2013-05-16T15:32:46Z

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The EIA reported a 99 Bcf injection into natural gas storage for the week ending 5/10/2013, inside of analyst predictions of an injection from 84 Bcf to 106 Bcf. Working gas in storage was 1,964 Bcf as of last Friday, 694 Bcf less than last year’s 2,658 Bcf stock and 83 Bcf below the 5-year average of 2,047 Bcf.

The front-month natural gas contract was last seen trading down 11.7 cents at $3.953/MMBtu.

Want to learn more? Review our Daily Pricing Updates as well as Technical and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

Technical Analysis by Melissa Depanian

2013-05-02T13:54:54Z

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Natural Gas
Since our last report posted on April 9th 2013, Natural Gas prices rocketed all the way up to $4.42MMBtU and then in the last week they paused to take in the view from their new, lofty position. Technically the chart shows the most recent period reported was characterized by tremendous upside strength and momentum, although near the end of the period prices paused and momentum swung into neutral albeit at a high level. We do note that the rise in prices from Feb 22nd to today has traced out a parabolic, near vertical ascent, a pattern that is not sustainable and when broken to the downside normally sees a swift, corrective drop.
Fundamentally the rapid rise is not unexpected considering the powerful upside cross currents within the market as the market as trader begin to fully realize the major changes that have propelled strong demand including the switch from coal to NG by generators, the port connections to facilitate the export of NG, and export and all manner of efforts to switch long haul trains & trucks over to natural or compressed gas. The net takeaway for this post is that after a blistering run up NG has the earmarks of being quite overbot for the near term and has signs it is ready to take a pause for consolidation of the gains.

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Electricity
Since our last report posted on April 9th the PJM Index essentially stayed in place jumping up and down to the rhythm of rapidly moving weather patterns as they traverse the regions. The temperature overlay has been one of cooler than normal temps throughout an what has passed for spring, which has kept the demand for heating energy somewhat elevated. It should be noted that the next thirty days is a good window of opportunity for procurement of energy at favorable seasonal prices.

Want to learn more? Review our Daily Pricing Updates as well as Fundamental and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

Schools: Solar in California; Online Energy Procurement in Texas by Melissa Depanian

2013-04-16T17:31:11Z

Source: Energy Manager Today

Making Energy Easy Again by Melissa Depanian

2013-04-16T17:35:19Z

Source: Energy Manager Today

Competitive Auctions Deliver Sustainability and Savings by Melissa Depanian

2013-04-16T17:26:43Z

Source: The Green Economy

Regulatory Analysis by Melissa Depanian

2013-03-22T15:00:23Z

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Connecticut – Electricity

In Connecticut’s newly released Comprehensive Energy Strategy, Governor Dannel P. Malloy has proposed a new statewide arrangement that would eliminate a customer’s option to be on the utility’s Standard Offer Service. The governor’s mandate includes requiring existing customers on standard service to switch to competitive supply. The Department of Energy and Environmental Protection (DEEP) intends to segment customers serviced on the utility into tranches of 100,000, and subsequently auction off these tranches to the top supplier. It is unclear at the moment whether customers currently on standard service will be allowed to opt-out of the auction.

The premise of auctioning these tranches is to generate new revenue for the state, which governor Malloy’s team believes will be in the vicinity of $80 million. In order to assure customer savings, competitive retail electricity suppliers will be mandated to offer a rate of at least 5% less than the utility’s standard offer. This stipulation, coupled with the fact that increased competition consequently drives down prices in the marketplace, should offer a great opportunity for customers to realize savings on their energy bill. If customers are not satisfied after the first year, they would be allowed to return to standard service if they desire. The proposal could begin its initiation phase as early as 2013, with hopes of full transition to competitive supply being implemented in 2014. Posted 3/22/13.

New York and New Jersey – Electricity

In 2013 ratepayers in New York and New Jersey may want to evaluate switching to competitive supply as several utilities lower the mandatory hourly pricing threshold for retail customers. All New Jersey utilities have filed a proposal to reduce the hourly price threshold from 750kW to 500kW effective June 2013. For the same time period, New York utility Niagara Mohawk (National Grid) has also proposed to reduce their respective threshold to 250kW. Another New York utility, Orange & Rockland, will decrease their threshold from 500kW to 300kW in May of this year. Customers on the hourly rate with the utility will be exposed to the volatility of the market when pricing electricity. The potential for steep price spikes often dissuades customers from indexing their energy use, and those that prefer budget certainty will instead migrate to a competitive supplier for a fixed price contract. Posted 2/13/13.

Washington, D.C. – Electricity

Just months after the District of Columbia Public Service Commission granted Pepco a smaller than desired rate increase; the utility has filed for another Standard Offer Service rate increase with the PSC for a 12 month term beginning June 1, 2013. Pepco has come under scrutiny in recent months with customers complaining about the utility’s increased rates, despite less than satisfactory efforts restoring power relative to their DC Metro counterparts. Simultaneously Pepco also faced a labor discord that practically resulted in a company strike. Though the subsequent rate increase is only expected to average around 3 mils for medium and large commercial customers, it won’t sit well with a previously disgruntled customer base and could influence further customer migration to competitive supply. Posted 2/6/13.

Drop us an email at info@worldenergy.com with any regulatory questions you have.

Want to learn more? Review our Daily Pricing Updates as well as Fundamental and Technical Analysis here: http://www.worldenergy.com/tag/market-edge/

Springfield Will Save Millions In Energy Costs After Online Auction by Melissa Depanian

2013-04-16T17:39:07Z

Source: WAMC Northeast Public Radio

Juiced For A New Era by Melissa Depanian

2013-04-26T14:12:58Z

Source: Worcester Business Journal

Small Business, Big Energy Management by Dan Mees

2013-01-29T21:14:38Z

Lots in the news these days about the traction – and funding – energy efficiency programs are gaining in the Northeast and across the country. Just last week Lawrence Berkeley National Labs published a report on an anticipated increase in energy efficiency programs funded by electric and natural gas utility customers, a dramatic doubling to nearly $9.5 billion by 2025.

This builds on the findings of a December 2012 report by New England ISO forecasting that the six New England States will spend $5.7 billion on energy efficiency measures between 2015-2012, with spending in Massachusetts increasing more than 5x from the 2008-2010 period, and in Connecticut by more than 2x from 2009-2011. These jaw-dropping figures are part of a macro-shift in the energy industry that some argue will slow power demand growth.

That said, in discussions involving 10-figure energy efficiency initiatives, it can be easy to lose sight of the individual success stories that are enabled by these programs. Healthtrax Fitness & Wellness, a fitness center operator with locations in 8 states, including CT, MA, MD, NJ and RI, shows how much small and medium-sized businesses stand to gain by participating in these burgeoning programs and taking advantage of energy management strategies and solutions that were once the sole province of larger companies.

Through better energy procurement, mechanical and lighting retrofits, energy management systems and knowledge of relevant utility programs, World Energy Solutions was able to help Healthtrax lower the price it pays per kWh of electricity, decrease the amount of energy it consumes, AND get the most incentive dollars it could from their respective utilities. The results were striking — $1M+ in savings with minimal out-of-pocket expense, a combination that made an immediate impact to Healthtrax’s bottom line.

The projected growth of energy efficiency programs well into the future signals that efforts to reduce energy consumption are here to stay. It also marks an opportunity for more small businesses to join with Healthtrax and others in adopting energy management strategies to advance their business.