Sharp surge in energy prices threatens economic recovery and is already slowing growth
We’ve seen countless material costs increase throughout the pandemic including skyrocketing fossil fuel rates. Consumers are wondering how long prices will continue to rise especially in the northern US with winter fast approaching.
The lack of resources coupled with higher costs are affecting global supply chains. Oil and coal are making up for the lack of natural gas and wind power supplies but are also showing rising prices compared to last year.
The probability of a recession increases when energy prices are steadily moving towards a higher percentage of GDP. Global effects on supply chains also impact numbers and priorities for spending. How Americans choose to spend their money is forecasted to be different than past years. Where they cut back on costs will affect not just the industry but overall economic growth. Economists believe we don’t need to worry about a recession at this point but are concerned with how badly it can cause growth to be affected negatively.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: https://www.cnbc.com/2021/10/12/sharp-surge-in-energy-prices-threatens-economic-recovery-and-is-already-slowing-growth.html
DOE EIA Weekly Gas Storage Report
Working gas in storage was 3,288 Bcf as of Friday, October 1, 2021, according to EIA estimates.
This represents a net increase of 118 Bcf from the previous week. Stocks were 532 Bcf less than last year at this time and 176 Bcf below the five-year average of 3,464 Bcf. At 3,288 Bcf, total working gas is within the five-year historical range.
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,923 Bcf as of Friday, September 3, 2021, according to EIA estimates.
This represents a net increase of 52 Bcf from the previous week. Stocks were 592 Bcf less than last year at this time and 235 Bcf below the five-year average of 3,158 Bcf. At 2,923 Bcf, total working gas is within the five-year historical range.
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,822 Bcf as of Friday, August 13, 2021, according to EIA estimates.
This represents a net increase of 46 Bcf from the previous week. Stocks were 547 Bcf less than last year at this time and 174 Bcf below the five-year average of 2,996 Bcf. At 2,822 Bcf, total working gas is within the five-year historical range.
Vistra Accelerates Closure of Ohio Coal Plant
VISTRA Energy will accelerate the retirement of their 1,200 MW (enough power to provide energy to 1,400 homes) plant on or before May 2022.
What will replace it? Solar or wind energy with battery storage.
The reason? Money. The price of power that VISTRA could receive has declined by over 50%.
Only renewable energy is economical enough to generate power at the expected energy rates.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: Vistra Accelerates Closure of Ohio Coal Plant to Mid-2022, Years Earlier Than Planned – Jul 19, 2021 (vistracorp.com)
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,727 Bcf as of Friday, July 30, 2021, according to EIA estimates.
This represents a net increase of 13 Bcf from the previous week. Stocks were 542 Bcf less than last year at this time and 185 Bcf below the five-year average of 2,912 Bcf. At 2,727 Bcf, total working gas is within the five-year historical range.
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,558 Bcf as of Friday, June 25, 2021, according to EIA estimates.
This represents a net increase of 76 Bcf from the previous week. Stocks were 510 Bcf less than last year at this time and 143 Bcf below the five-year average of 2,701 Bcf. At 2,558 Bcf, total working gas is within the five-year historical range.
Illinois Shines
With the rise of solar usage, incentives are more available now and many are implemented through state programs. Illinois Shines was created by the Illinois Power Agency (IPA) to support developments for distributed solar generation and community solar. Monitored in accordance with the Future Energy Jobs Act, the IPA purchases Renewable Energy Credits (RECs) from community solar projects and sets costs through the Adjustable Block Program known as Illinois Shines.
Community solar benefits areas that cannot install rooftop arrays due to limited space, high costs, and issues with zoning laws. Illinois Shines increases solar access for residents that may not easily receive green energy while also providing information and inspections for vendors to become approved.
Illinois Shines’ evaluation of Realgy Energy Service’s solar arrays at Ridgeland Recreation Complex recently concluded. They state Realgy’s project is in compliance with program guidelines. We are proud to serve the Illinois community and help the state meet its renewable energy goals.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: https://illinoisshines.com/
US Approves 1st Major Offshore Wind Energy Project
The United States joined the rest of the world and issued final permits allowing for the development of large-scale offshore wind projects.
Large scale: 62 turbines standing 90 stories above the water with underground cables bringing electricity onshore to 400,000 homes. The turbines will be located about a mile off the coast of Massachusetts.
Wind power is the least costly energy power to build and the new turbines from General Electric are the largest available.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: https://www.npr.org/2021/05/11/995852356/biden-administration-approves-first-major-offshore-wind-energy-project
$8.3 Billion Proposal for Addressing Texas Blackouts
Berkshire Hathaway is a public company that owns several utilities. Their proposal illustrates the difference between a company taking risks versus a utility.
Berkshire is proposing the Texas Grid operator (utility oversight company) build a gas-fired power plant that would be weather normalized and fixed to support a large portion of Texas’ energy demands. Berkshire is proposing to spend $8.3 billion to build this plant.
The cost: Berkshire would earn what a Texas utility earns on investments which is 9.3%.
So, Berkshire like any utility in Texas that receives regulatory approval, earns a return regardless of whether what they build works.
Berkshire as a public company takes risks building and operating businesses such as Dairy Queen, Burlington Northern Railroad, or Sherwin-Williams. Any investment in these businesses comes with no guaranteed return.
EVERY utility makes money by spending money to provide service. The Texas Grid operator will undoubtedly not accept this proposal but, it does show the difference between private businesses and utilities.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: https://www.msn.com/en-us/money/markets/buffett-s-berkshire-floats-8-3-billion-fix-for-texas-grid/ar-BB1eXRHl?ocid=spartan-ntp-feeds