COMPETITION WORKS; to the tune of $37 Billion
The State of Illinois is celebrating, not the ending of winter but the savings from energy deregulation.
Illinois consumers, including residential, commercial and industrials, saved a total of $37,000,000,000 as a result of opening electrical supply to competition.
Realgy Energy Service has been an alternative energy supplier in Ameren and COMED and our customer know the benefits of buying directly from Realgy.
I like the last line; “Competition works.” I guess if it didn’t we would all work for the Government, right comrade!
Read the whole Compete Coalition article, “With $37B in consumer Savings, Illinois Results Deemed ‘Triumph of Market-Based Public policy’”
Realgy’s Winter Settlement Guarantee
In order to demonstrate how committed Realgy is to providing savings; even during a Winter Vortex we are offering Realgy’s Winter Settlement Guarantee.
During this winter’s months starting January 2014, Realgy’s costs were above utility as it reconciled its settlement charges during each month of service. The utilities don’t reconcile their costs monthly. They accrue these costs and then seek to recover them.
So, the utility prices are increasing just as Realgy’s price is decreasing. Historically Realgy’s ManagedPriceTM service offers a lower price compared to the utility’s rate; this was distorted during the winter when Realgy passed through our settlement costs and the utilities did not. Now that the utilities will collect these costs, Realgy will again show significant savings compared to the utility rate.
This Guarantee puts into action Realgy’s tagline:
Invested in ServiceTM
The following is an explanation of how our Winter Settlement Guarantee will work; Winter Settlement Guarantee Terms Conditions
NIPSCO: Winter Temperatures Bring Higher than Projected Natural Gas Bills
NIPSCO is adding up the costs from the Winter Vortex and forecasting higher costs ahead.
Unlike Realgy, who reconciles our accounts each month, NIPSCO will accrue these costs and recover or charge for them later. This accrual method prevents price increase from occurring all at once as it spreads the increase over months.
Realgy’s service in NIPSCO has 10 years of providing consistent monthly savings, except for January and February 2014 we have been below NIPSCO every month but 2 in the last 4 years (48 months). Once NIPSCO passes through their costs our higher price will be like the winter snow; gone and your savings will come like the greening of Spring!
Happy Spring.
Read the whole NW Indiana Life article, January Temperatures Bring Higher than Projected Natural Gas Bills
In Indianapolis: Cold Weather Driving Higher Gas Usage and Higher Bills
Citizens Energy is passing through the costs for winter as they get added.
Realgy can account for gas costs by the end of each month and has passed through this winter’s costs already.
Citizens Energy like most utilities will accrue the costs associated with this winter and then pass through the total costs over time.
In the past 5 years; Realgy’s INDEX+ service was higher than Citizens Energy in just 2 months; January 2014 and February 2014. Once Citizen Energy passes through their costs due to winter; Realgy’s higher cost for those two months will disappear. Just like the snow.
Think Spring.
Read the whole Citizens article, Cold Weather Driving Higher Gas Usage and Higher Bills
Michigan Sets Expedited Review of Polar Vortex-Driven Hike
As anticipated the costs associated with this winter’s weather is starting to be tabulated and will be passed through to customers who receive their gas service from Consumers.
DTE, SEMCO and MGU are all following suit. The same reason will be cited;
“Significant, unanticipated increases in the market price for natural gas as a result of the Polar Vortex phenomena, extended periods of colder-than-normal weather occurring in Michigan and elsewhere in the United States and associated significant increases in demand for natural gas and natural gas send-out.”
Realgy has already passed through the costs required by us to deliver the extra gas demanded by each utility. We will return to our low costs which historically are below each of the utilities. At the same time, the utilities will begin passing through these costs and the cost will stay in place until it’s all collected.
Read the whole Energy Choice Matters Article, Michigan Sets Expedited Review of Polar Vortex-Driven Hike in Consumers
MI Cost Recovery is coming April 2014
MI natural gas utilities have requested approval to pass-thru the costs of procuring natural gas during this winter. This winter’s extraordinary weather is creating as you can imagine an extraordinary cost increase.
The above link is to the regulatory filings detailing how MI utilities want to recover winter costs by increasing their ceiling rates starting April 2014 which would last 12 months as follows;
Consumers: $5.575
SEMCO: $5.31
MGU: $5.22
Consumers is making an extraordinary request to recover: $90,000,000 in winter related costs.
In Dec 2013 they filed their normal rate case of $704,024,000 which was revised to $793,346,000 or about $90,000,000 due to winter related costs.
Consumers would increase their ceiling price from $4.3962 to $5.5750 (about $1.20 / MCF just for winter). This was intended to start April 2014.
The MPSC (MI public service commission) is recommending approval the MI AG (attorney general) opposes it. If these costs are delayed in getting passed-thru then the carrying cost (interest) on $90 million will cause a larger increase later on!
The other MI gas utilities have filed extraordinary cost increases as well, which include;
SEMCO would increase their ceiling price from $4.73 to $5.31
MGU would increase their ceiling price from $4.77 to $5.22
The only gas utility that did not submit an extraordinary cost increase to start April 2014 was:
MICHCON has not submitted an extraordinary rate increase at this time (perhaps waiting for the ruling on the AG appeal). At present their ceiling will be $4.47.
Realgy has passed along all costs from this winter in the month the costs were incurred. While our cost were above each of utilities, with the release of winter are costs, they are falling sharply and Realgy will be below the utilities starting in May 2014 and continuing for the foreseeable future.
In summary:
MI utility gas prices are going up due to NYMEX price increases starting April 2014.
All but MichCon has requested to recover the costs associated with winter. This increase is being delayed from an appeal by the AG.
The impact of the delay will cause the eventual cost pass-thru to be higher due to the interest charges on the extraordinary costs from this winter.