COMED wants to charge you for what you might use, not what you do use
Utilities are monopolies that regulators review to ensure they are spending more to provide the essential service and not collecting more than is needed to do so.
COMED, Chicago’s electric monopoly, wants more money and is proposing a new way to collect it from home owners.
Currently, you pay based on how much energy you use in any given bill period.
However, COMED wants you to pay that PLUS what’s called demand based pricing.
Demand based rates have been a component for industry for a long time. When industry start and stops large machines it can draw a lot of power all at once. This type of load can be hard for a utility to manage across many, many industries.
However, homeowners do not start large machines. We start TVs and AC units. Nothing that a large utility cannot handle. So why charge for demand? Because they want additional revenue because we are using less electricity as lighting and homes become more efficient.
Regulators should say No. Demand rates will reduce incentive to save money on energy usage for residential users.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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.
Additional Information:
http://chicago.cbslocal.com/2016/05/17/bill-would-drastically-change-way-comed-charges-customers/
Michigan law makers are again playing politics with energy policy
The Michigan senate passed a bill that does, amongst other things, puts greater restrictions on Customer Choice. This is a program that allows certified energy marketers to compete against the monopoly utility to offer customers direct wholesale pricing without any additional utility markup. So, why does the politicians want to restrict a program that makes a monopoly compete? Could it be the monopoly pays more to their re-election campaigns than their constituents that would benefit from the lower utility rates?
Let’s hope that reason prevails and Customer Choice survives to continue to benefit the rate payers in the state.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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.
Additional Information:
DOE EIA Weekly Gas Storage Report
Here is this weeks’ EIA natural gas storage report. Working gas in storage was 2,825 Bcf as of Friday, May 20, 2016, according to EIA estimates. This represents a net increase of 71 Bcf from the previous week. Stocks were 756 Bcf higher than last year at this time and 769 Bcf above the five-year average of 2,056 Bcf. At 2,825 Bcf, total working gas is above the five-year historical range.
Estimated Injection 68 Bcf
Vs
Actual Injection 71 Bcf
Analysts predict build below 5-year average
A lower-than-average injection is anticipated for the third consecutive week, further reducing the surplus to the five-year average. The US Energy Information Administration will estimate an injection of 68 Bcf to gas in storage for the reporting week that ended May 20 according to a consensus of analysts surveyed by Platts. The EIA plans to release its weekly storage report at 10:30 am EDT (1530 GMT) Thursday. The expected injection would be much less than the 106-Bcf injection reported at this time in 2015 and less than the five-year average of a 97-Bcf build, according to EIA data.
DOE EIA Weekly Gas Storage Report
Here is this weeks’ EIA natural gas storage report. Working gas in storage was 2,754 Bcf as of Friday, May 13, 2016, according to EIA estimates. This represents a net increase of 73 Bcf from the previous week. Stocks were 791 Bcf higher than last year at this time and 795 Bcf above the five-year average of 1,959 Bcf. At 2,754 Bcf, total working gas is above the five-year historical range.
Estimated 79 Bcf
Vs
Actual 73 Bcf
The US Energy Information Administration will estimate an injection of 79 Bcf to natural gas in underground storage for the reporting week that ended May 13, according to a consensus of analysts surveyed by Platts. An injection within expectations would be less than the 98-Bcf injection reported at this time in 2015 and also less than the five-year average of a 91-Bcf build, according to EIA data. This would also mark the second consecutive week of a below-average injection. The wider range of analysts’ expectations for this week was narrow, calling for an injection of 77 Bcf to 83 Bcf. An injection within analysts’ expectations of 79 Bcf would grow stocks to 2.760 Tcf, 801 Bcf more than the five-year average and 797 Bcf more than the corresponding week last year. The below-average build would help reduce the current surplus to the five-year average and to last year’s level by 12 Bcf and 19 Bcf, respectively.
DOE EIA Weekly Gas Storage Report
Here is this weeks’ EIA natural gas storage report. Working gas in storage was 2,557 Bcf as of Friday, April 22, 2016, according to EIA estimates. This represents a net increase of 73 Bcf from the previous week. Stocks were 870 Bcf higher than last year at this time and 832 Bcf above the five-year average of 1,725 Bcf. At 2,557 Bcf, total working gas is above the five-year historical range
Estimated 70 Bcf.
Vs
Actual 73 Bcf.
After two weeks of the US Energy Information Administration’s gas storage estimates coming in well below the five-year average injection, analysts expect the next one to be the biggest build of the year. A consensus of analysts surveyed by Platts expects that EIA will estimate an injection of 70 Bcf to gas in underground storage for the reporting week that ended April 22.The agency plans to release its weekly storage report at 10:30 am EDT (15:30 GMT) Thursday. An injection within expectations would be less than the 84 Bcf injection reported at this time in 2015 but more than the five-year average of a 52 Bcf build, according to EIA data. Predictions were all over the board as the wider range of analysts’ expectations called for an injection of 55 Bcf to 81 Bcf. An injection within analysts’ expectations of 70 Bcf would grow stocks to 2.554 Tcf, a surplus of 829 Bcf relative to the five-year average. It would be the biggest build since an 81 Bcf injection was posted for the week ended October 16. The expected injection marks the first week of the year when a build is expected to have occurred in all five of the EIA’s storage regions.
DOE EIA Weekly Gas Storage Report
Here is this weeks’ EIA natural gas storage report. Working gas in storage was 2,484 Bcf as of Friday, April 15, 2016, according to EIA estimates. This represents a net increase of 7 Bcf from the previous week. Stocks were 881 Bcf higher than last year at this time and 811 Bcf above the five-year average of 1,673 Bcf. At 2,484 Bcf, total working gas is within the five-year historical range.
EIA estimate storage injection of 2 Bcf
Vs
Actual injections 7 Bcf
A consensus of analysts surveyed by Platts expects the US Energy Information Administration will estimate an injection of 2 Bcf to natural gas in underground storage for the reporting week that ended April 15. EIA is scheduled to release its weekly storage report at 10:30 am EDT (1530 GMT) Thursday. An injection within expectations would be much less than the 82 Bcf injection reported at this time in 2015 and less than the five-year average of a 45 Bcf injection, according to EIA data. The wider range of analysts’ expectations for this week called for a withdrawal of 2 Bcf to an injection of 8 Bcf. Last week, EIA reported a 3 Bcf withdrawal that decreased inventories to 2.477 Tcf, which was 62.9% more than the year-ago inventory of 1.472 Tcf, and 52.1% more than the five-year average of 1.628 Tcf.
New Hampshire will review its entire Energy Utility industry
New Hampshire has announced a complete review of their electric utility process; under a grid modernization review.
This is important, why?
1. New Hampshire was late in adopting customer choice
2. This is a comprehensive review to include: metering, rate process and the role of energy marketers
3. It should be done comprehensively and not piecemeal.
In many marketers, Customer Choice programs have 15+ years of history. Adopting a unified utility model which recognizes energy marketer’s ongoing role, the use of new technologies and updated rate models will continue to bring competition (lower prices and cleaner energy) into energy utilities.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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 and Index, Fixed pricing.
Additional Information:
http://www.energychoicematters.com/stories/20160405d.html
How Utility Gas Pipeline Infrastructure is Paid For
When a monopoly (energy Utility) wants to spend money, it normally follows a three step process:
- Submit details of cost expenditures and the corresponding consumer benefits
- Get approval from the state regulator; this requires public hearings
- After the monies were spent on what was approved, demonstrate the benefits were delivered
Think about that; the utility makes the case to spend money offering benefits such as improved reliability (less costs on emergency repairs) or lower costs of operation. Then once completed, the benefits must come; otherwise, they don’t get to recover their costs.
The utilities have to make reasonable and prudent recommendations. The regulators must carefully consider the costs and benefits. Once approved, the utilities must get the construction installed at the price quoted. After it’s constructed the utility must demonstrate the benefits.
Any short cut to this process and more than likely the consumer pays for it.
Many utilities (and utility regulators) are realizing that much of the installed pipelines are approaching their end of life. This will require digging them up and replacing them. Very expensive. So utilities and their regulators are proposing ways to reduce these costs.
However, regulators should not reduce their oversight. Too often lapses in regulatory oversight leads to costs overruns and shortcuts which all but eliminate benefits to consumers.
The following article is a great example of how a monopoly gas utility in Kansas and their regulators are dealing with it. It is very representative of the process occurring in every state.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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 and Index, Fixed pricing.
Additional Information:
First Ever Criminal Charges Assessed for Lying to FERC
Déjà vu all over again. Another manufacturer has lied about its emission and tried to conceal and it’s not Volkswagen.
A first-ever criminal charges brought by the Federal Energy Regularity Commission (FERC) against Berkshire Power.
Berkshire Power operates power plants and manufacturers electricity. In the course of their operation, they have to file with FERC emission data. They knowingly submitted information they knew to be false in order to gain more favorable dispatch (electric production).
FERC alerted the Environmental Protection Agency and state authorities to tipping them off these power plant emission’s looked wrong.
Knowingly submitting false emission data violated the Clean Act Air. Due to their reported “lower emissions” these power plants were dispatch more often which violated the
Federal Power Act (FPA). Essentially the FPA ensure fair trade which relies on accurate data.
Realgy supports the enforcement of both the Clean Air Act and the FPA as ensure a free and fair market.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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 and Index, Fixed pricing.
Additional Information:
The difference between the US and China as seen thru the electric grid
So what does it look like to build a high voltage transmission network (think those large metal structures and wires you see near the highways) in the US vs. China?
In China, it takes the Government declaring it to be built. The Government then acquires the land and hires the contractors.
In the US, private developers or utilities have a longer process. First, they must gain approval by each state (sometimes each county) along with the Federal Government and each landowner. Then raise the money necessary to design and build it. Needless to say, China can move faster in constructing such infrastructure.
Both countries are in the process of constructing transmission networks connecting the areas where high wind and solar production are possible to the cities/factories where that power is needed. This is an enormous undertaking by both countries.
The only way that either country can reduce its dependence on fossil fuel generated electricity is first to construct transmission towers to bring the solar/wind generated energy to where it is needed.
China’s approach might be quicker but it comes at a cost of fair markets, environmental consideration and public vs. private economies.
Both countries will pursue renewable energy development and the global environment should benefit by reducing greenhouse gases. The pace of the change will be interesting to watch.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. 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 and Index, Fixed pricing.
Additional Information:
http://www.vox.com/2016/3/30/11332900/china-long-distance-transmission