Michigan energy policy is moving forward….to higher costs under full monopoly control
As previously noted, the MI House Energy Committee voted on three bills without reading them. These bills were sent to the full House for a vote.
Where do they stand now:
- Electric Energy Choice: currently, 10% of MI customers can choose an electric energy supplier. The result has been millions of $$ dollars in savings. House Bill would have imposed non-commercial requirements on the energy marketers causing them to withdraw from offering customers an alternative to the utility.
- As of now, 10% would stay in place BUT customers would be barred from switching for 15 YEARS! What choice is this?
- Energy suppliers will face additional regulatory requirements that would do nothing more than raise their cost to provide service, thereby limiting customer savings.
- Thirty percent (30%) renewable energy goal by 2025. This “goal” has no enforcements. Currently, MI is achieving a 1.5% efficiency gain per year. So this a net increase of 5%. A token nod to a cleaner environment and improved energy efficiency.
MI must hope that the MI Senate counters this energy policy with a policy that encourages market competition and clean energy production.
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
DOE Eia Weekly Gas Storage Report
Working gas in storage was 4,000 Bcf as of Friday, November 13, 2015, according to EIA estimates. This represents a net increase of 15 Bcf from the previous week. Stocks were 404 Bcf higher than last year at this time and 207 Bcf above the five-year average of 3,793 Bcf. At 4,000 Bcf, total working gas is above the five-year historical range.
Survey predicts storage to hit historic 4 Tcf level
- EIA storage estimate gets an overhaul
- 4-plus Tcf becomes the new normal
Actual 15 Bcf.
The U.S. Energy Information Administration on Thursday is expected to report a natural gas storage injection between 17 and 21 Bcf for the week that ended November 13, according to a Platts’ survey of analysts. If the injection comes in as expected, storage levels will crack the 4-Tcf level, an all-time record. An injection within expectations would be more than the 9-Bcf withdrawal reported at this time last year and more than the 12-Bcf five-year average withdrawal, according to EIA data. Last week, the EIA reported a 54-Bcf injection that increased inventories to 3.985 Tcf, which was 379 Bcf, or 10%, more than the year-ago inventory of 3.606 Tcf, and 180 Bcf, or 4.7%, more than the five-year average of 3.805 Tcf.
Will SMART Meter installations bring smart services?
Bay City, MI is 4 years into implementing a citywide Smart meter program for water and electric utilities. The result: non-complaint customers will be charged $9 / month who have not cooperated with meter installers.
That’s right; a higher cost for those who DO NOT have a smart meter installed. This affects about 10% of accounts.
What benefits do you get with a smart meter? For consumers, none. For the water company, discrepancy in water usage is more readily found.
With MI electric choice, under threat of repeal the benefits for the Smart electric meter don’t look all that appealing either. Additional information: http://realgyenergyservices.com/energy-policy-passes-house-energy-committee-without-being-read/
So, get your Smart meter and pay more along with those who don’t…just don’t look for any benefits.
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.mlive.com/news/bay-city/index.ssf/2015/11/bay_city_residents_without_sma.html
Could a superman leap this wind turbine?
The tallest U.S. wind tower is under construction in Iowa. At 377 feet from ground to hub, the wind tower is as high as a 40 story building. The tower is attempting to show that concrete can be used as the tower base for wind turbines. Typically, steel is used in tower construction.
MidAmerican Energy will own and operate this tower as part of a 154 megawatt wind farm. Each 1 megawatt can supply about 800 homes.
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://midwestenergynews.com/2015/11/16/tallest-u-s-wind-tower-under-construction-in-iowa/
Energy policy passes house energy committee without being read
Rep Gary Glenn of Michigan has attempted to stop a freight train.
The Michigan House Energy Committee voted to forward energy legislation to the entire House of Representatives BEFORE it WAS READ. That’s right; they voted on energy policy that wasn’t even reviewed, understood or had a chance to be read by the committee members. It will now go to the full House for review.
The bill they passed, by a majority, will in fact limit if not eliminate MI electric customer choice.
- The 10% of energy users will have to return to the utility default service.
- Customer Choice marketers will withdraw as the requirements put upon providing service ARE NOT commercially available.
o Since MI Electric Customer Choice began every energy marketer has delivered its energy, never a default
- Michigan will continue to have the HIGHEST electric costs in the Mid-west
- Michigan will have some of the most polluting power plants in Mid-west
We salute Rep Gary Glenn for trying to bring reason to a process that has been dominated by lobbyist and utility donations to politicians.
Unfortunately Rep Gary Glenn, could not stop this runaway train that carried this bill forward.
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: www.realgyenergyservices.com
Supporting Video: https://youtu.be/J-ssV31O8Ig
DOE Eia weekly Gas storage report 11/13/15
Here is this weeks’ EIA natural gas storage report. Working gas in storage was 3,978 Bcf as of Friday, November 6, 2015, according to EIA estimates. This represents a net increase of 49 Bcf from the previous week. Stocks were 373 Bcf higher than last year at this time and 173 Bcf above the 5-year average of 3,805 Bcf.
EIA estimate 49-53 Bcf gas
VS
Actual was 49 Bcf
A build within those expectations would boost natural gas storage stocks to a new record of 3.978 Tcf to 3.982 Tcf. It also would be more than the 47-Bcf build reported at this time a year ago, and it would more than double the 23-Bcf five-year average increase, according to EIA data. The wider range of analysts’ expectations for the week was for an injection between 28 Bcf and 78 Bcf. Stephen Schork, principal of The Schork Report, said wider ranges of estimates are not unusual at this time of the year, as the market begins to shift from injections to withdrawals.
Who oversees a monopoly that is spending recklessly?
A utility is granted a monopoly to conduct its business for the benefit of the public. Without competition (and who would want more poles on the street or the road ripped more for more pipes), state regulators decide if the utility is spending money in the public interest; that is for improving the distribution of energy.
Peoples Gas estimated repairs to maintain its pipes at $4.5 Billion in just a year that number is now $8 BILLION.
This after a consultant was hired that reviewed Peoples work practice in the repairs and found them to be in disarray.
Recall, a utility monopoly earns profit by spending money; that is they earn a rate of return for borrowing money and investing it to perform its job. The regulators are charged with making sure we, the public, get its money worth.
In Illinois, the regulators overseeing utilities is called the Illinois Commerce Commission (ICC). Without diligence and competency by the ICC, Peoples Gas can waste money and still earn a profit without the residents receiving any benefit.
If there is no competition for service, we need a strong watchdog to ensure we get value for our investment.
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: www.realgyenergyservices.com
Supporting Article:
Monopoly or Market Choice: should the monopolies decide?
State law makers are the ones who decide on the passage of laws, but business and their lobbyist try to steer them.
So do monopolies…as has been recently demonstrated in Michigan.
State lawmakers passed an energy bill reasserting monopoly control back to the state electric utilities.
The state lawmakers in rewarding DTE and Consumers Energy with more monopoly control did so at the expense to state residents.
Consider:
- With only 10% of business able to choose their wholesale supplier since 2001; they saved $1.1 billion. But they want to roll this back.
- They will protect outdated and polluting power plants because it benefits the utilities.
- Michigan has some of the highest electrical costs in the Mid-west, because they have little competition and state lawmakers want it this way.
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: www.realgyenergyservices.com
Supporting Article:
http://blogs.detroitnews.com/politics/2015/11/09/dte-consumers-closer-full-energy-monopoly/
Price Protection vs. Realgy PriceWatchTM
NIPSCO sent out a letter to residents offer a fixed price . Realgy sent out an email, followed by a phone call offering a fixed price.
What’s the difference:
| Realgy PriceWatchTM | NIPSCO Price Protection |
| Term: Nov 2015 – Mar 2016 | TERM: 12 months |
| Price: $0.0345 / therm | Price: $0.0475 / therm |
BIG Difference: $0.0131 / therm
NIPSCo’s offer covers the summer months when natural gas pricing tends to drop.
Realgy’s PriceWatchTM covers only the winter months, when gas pricing is the highest and most likely to go higher.
Over the last 12 months Realgy has been 27.74% below NIPSCo’s price; this amounted to $3,784 in savings for our average customer.
So which fixed price is protecting you?
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: www.realgyenergyservices.com
Supporting Article:
Realgy’s PriceWatchTM: http://realgyenergyservices.com/request-for-service/pricewatchtm/
NIPSCO Price Protection Service: https://www.nipsco.com/our-services/price-protection-services
Utilities spent over $500,000 on lobbying politicians…guess who they were lobbying against?
Michigan utilities are monopolies; they have no competitors. So, why spend $1,600,000 (one million six hundred thousand dollars):
1. $500,000 in donations to political office holders
2. $800,000 in TV ads
3. 39 registered lobbying firms
4. 30 lobbyist agents
Who is this lobbying action against…. in a word, US. Anyone who uses energy in Michigan.
The utilities are attempting to prevent cleaner energy, expanding customer choice programs and allowing competition.
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: www.realgyenergyservices.com
Supporting Article:
http://www.mlive.com/lansing-news/index.ssf/2015/11/utility_influence_in_michigan.html