Smart Thermostats
Smart Thermostats or Not.
I know you have seen Smart Water, we are being promised Smart Cities and of course the ubiquitous Smart Phone!
As with the smart phone (it’s only been 7 years since Apple iPhone came out), we adjusted to being connected 24/7/365 and Apps brought us Candy Crush, Tweets and Angry Birds; so too a connected thermostat will bring such changes.
Currently, there are apps that allow control over the thermostat and home lighting but it seems more a gizmo than a tool. A big advance in the usability of a connected thermostat will be when appliance manufacturers and energy companies allow pricing to be priced each hour.
Imagine: it’s 4PM and the price of electricity is $0.10 / kWh and you just load your washing machine and turn it on. However, it doesn’t start. It flashes you that it will begin at 8PM when the price is scheduled to be $0.03 / kWh. This type of pricing is called Time-of-Use (TOU) and it’s been available for very large energy users for some time. It will become available to energy consumers of all size.
The savings from one wash will be relatively small but in aggregate across a year and across a City could be very large, perhaps even smart!
So, what would it take you to want to buy a Smart Thermostat?
Some additional information on Smart Thermostats is available at: http://www.intelligentutility.com/article/15/01/smart-thermostats-could-help-utilities-combat-death-spiral?utm_source=2015_01_28&utm_medium=eNL&utm_campaign=IU_DAILY&utm_content=4521
Realgy Energy Services, a natural gas and electric energy provider, advocates for the use of technology that allows consumers greater control over their choice of energy supplier and the use of energy.
February 2015: Tied for Coldest February on Record
Chicago and the Tri-State area experienced a record cold February 2015 to go along with a very cold winter.
One more month and the winter of 2014/15 will be over and we can tally up the final score.
http://www.crh.noaa.gov/images/lot/15winter_CHI.png
In 10 years, your job probably won’t exist
Happy New Year, the future continues!
So with that in mind, here is an interesting question…will your job (career) exist in 10 years, how about 20?
Change is relentless and with the new comes obsolescence.
In energy, the prediction has been that solar will continue to advance in price and efficiency. While this is true, other technology is not standing still.
· The internal combustion engine (cars, trucks, buses, electric generation) is getting more efficient. The US Government has set the average fleet MPG at over 50 within the next 15 years. Currently, it is around 30 MPG.
· Light bulbs have radically changed, such that the incandescent is no longer available. The average LED light bulb will operate continuously for 5 years and would consume less energy over those 5 years than 1 incandescent light bulb operating for just 6 months. In the US, adoption to all LED light bulbs could eliminate the need for over 80 coal fired power plants.
· Of course, fracking has changed the landscape of the oil industry and has cut US importing oil by nearly 30% over the last 5 years.
So change touches us all. It’s exciting to forecast into the future and equally exciting to see it be wrong and right!
Cheers to change.
by David Tuffley a lecturer in applied ethics and socio-technical Studies at Griffith University
Natural Gas Collapses – “This is Panic Selling”
Panic is usually not a “good” thing. But, panic can be used to highlight extremes.
Last winter (2013); “Polar Vortex” came into most people’s vocabulary. Bitter cold extended over most of the continental United States. The result: a panic to higher spot price for natural gas. Recall supply and demand. The panic occurred due to “bottlenecks” in supplying natural gas and electricity.
This winter (2014) began yesterday (December 21, 2014) and the panic has resulted in natural gas prices dropping about 35% since end of Nov 2014. The reason: it’s not as cold as expected and the forecast is about Normal or average winter cold. So traders sold their position in natural gas (the NYMEX futures).
Volatility of natural gas is nothing new. So, if you are an end-user, what should you do? Look ahead…
1. If you didn’t already, think about locking in your Feb and Mar 2015 price. Recall the old adage; Hogs get slaughter, pigs live on.
2. Do not lock in a long term (beyond 6 months). Summer prices have not moved as much as this winters.
3. Talk with your supplier about what this means for your 2015 budget.
Do not think like a trader and try to buy at the bottom; the reasons are many and the benefits are few (compared to the downside). Instead, look at what this means to your budget and plan accordingly.
Realgy is a full-service energy provider and would appreciate an opportunity to speak with you about your energy needs.
http://www.cnbc.com/id/102289402
COMED and Ameren Raise Rates
Ameren and COMED have raised their delivery service costs. The following increases will take effect in January 2015:
Ameren up 17.4%
COMED up 11%
MidAmerican announced last month an increase of nearly 11%.
Realgy Energy is a wholesale energy provider that allows you to purchase your energy without the utility markup. The result; we save our customers money.
Additional information on our service is available at;
For COMED: http://realgyenergyservices.com/service-plans-53/
For Ameren: http://realgyenergyservices.com/service-plans-57/
For MidAmerican: http://realgyenergyservices.com/service-plans-58/
We serve residential and commercial customers.
The following is a link to the news announcement
http://www.thenewstribune.com/2014/12/12/3537665/ameren-comed-get-ok-to-raise-rates.html
How to Get a Good Deal from an Energy Marketer
I am often asked how to get a “good deal” in choosing an energy supplier?
In the past, my answer typically began with an explanation of how “deregulation” or “customer choice” developed (which gets me glassy-eyed looks), which was followed by general advice such as: determine the quality of supplier; review the terms and conditions and then the pricing.
However, as we are having renewals with our customers reoccurring for the 4th, 5th and 6th time, I think what these customers have told me is more relevant….
In addition, during our 12+ years we seen many, many processes from consultants, aggregators or in request for proposals, I have consolidated these experiences into what I believe is a list of best practices;
1. Assemble a copy of all your bills (either electric or gas) including the following (this will help you eliminate or question what a marketer sends you in step 2).
a. Identify the energy cost on the bill(s).
b. Identify the delivery cost on the bill(s).
c. Add up the total energy used (either kwh for electric or Therms for natural gas) for 1-12 months, pairing each month with the energy cost (the delivery cost will not change).
2. Contact marketers and ask them for a proposal for service.
a. A list is available at: http://realgyenergyservices.com/customer-services/web-links/ under each utility.
b. Eliminate the ones who do not reply.
c. For ones who reply, ask for a comparison for at least the last 12 months of how their proposal price compared to the utility cost. Again, eliminate those who do not respond.
d. Look at how the marketer’s pricing and the utility pricing are presented.
IN MANY CASES marketers may be above a utility in some months; they should be able to explain why.
AVOID those that are above the utility for 12 months in a row.
AVOID those marketers whose comparison does not accurately show the utility cost.
3. With the marketers who responded and sent you their pricing comparison, ask for their terms and conditions (contract or Agreement). Read their agreements paying special attention to the following;
a. Pricing; is it defined, how long does it last, and what happens when it ends?
b. Quantity; if you’re buying a fixed price make sure it says how much gas you’re buying at the fixed price and what happens if you use more or less than that amount. If you’re buying a variable rate, it should state it’s for all your usage or “open” quality.
c. Renewal; when do you have to give notice to terminate, what happens if you don’t?
d. Additional Services: is storage included, what about changing plans (from variable to fixed), taxes, service fee, online access, answered customer service (vs. automated attendants), etc. Some additional service is worth the price, some are not.
While not an official step, there are good reasons to eliminate a marketer from consideration (in other words, absolutely avoid), such reasons include;
a. No trade references or BBB accreditation.
b. An initial rate (fixed or variable) that lasts only 1-6 months and renews which is followed by a different (perhaps) vaguely defined price. These are known as “teaser” rates and will inevitably cost you more than the utility.
c. Language that doesn’t make sense is not clear in its intent or clearly favors the marketer.
d. A renewal date scheduled during the winter or summer. Make sure you can terminate your agreement for natural gas or electricity in April or May. This will give you the best period to switch or renew during a “low” energy usage period when pricing is more stable and you will not be under pressure to continue the agreement.
Natural gas prices have changed 25% in 4 weeks!
Does the words “Polar Vortex” strike fear into you?
If so, this CNBC article, Wild ride for natural gas signals volatile winter ahead, describes record production of natural gas and the forecast of colder weather similar to last winter.
So, the winter forecast is cold and there is abundant natural gas…..the question is at what price.
To avoid the uncertainty of winter gas prices Realgy offers:
Storage service’ “Winter gas at Summer prices” and PriceWatchTM (fixed price)
Please contact our Customer Service department for additional information at 877-300-6747 x1000
Read the whole CNBC article “Wild ride for natural gas signals volatile winter ahead”
US predicts lower heating bills this winter
US as a whole may have lower heating bills, however, in the article details the Midwest; Illinois, Indiana and Michigan are forecasted to have a colder than average winter.
Frosty is coming to Town!
Find the full abc news article, “US Predicts Lower Heating Bills This Winter”
Duke Energy proposes plan to modernize electric grid
Duke Energy’s proposal for maintaining/updating their electric grid in their franchise service area of Indiana is a great example of a regulated utility’s typically large improvement process.
First step; maintain the current system without improvement for as long as practical. This is usually cost effective in keeping rates low but comes with the cost of more frequent outages and high system maintenance costs.
Second step; offer to upgrade an outdated (in this case a century old) technology. After nearly 100 years without significant changes, you would think there would be benefits in replacing old technology. The highlighted benefits would be expected; however, note the absence of any measurable benefits.
Third step; get paid. Regardless of what benefits actually occur, Duke will be guaranteed 80% recovery of their costs (not estimates, but what they actually spend). The remaining 20% will be included in a new filing that is subject to regulatory review. The regulators could disallow recovery of this 20% if they found Duke did not spend the money prudently or that the intended benefits did not materialize.
Bottom-line, this will most likely be approved. The rates will increase and service should be improved. Correlating cost vs. benefits is always a challenge.
Indiana is an outlier in the area, as they do not have customer choice for their electric service as neighboring states do. One would hope that with consideration of a modern electric grid, a modern energy choice program would precede it. And, with a modem energy choice program, there is no rate increase.
Realgy offers electric choice in Illinois where the average savings is over 8%.
Read the full Intelligent Utility article “Duke Energy Indiana proposes plan to modernize its statewide electric grid.”
Exelon, politics and Illinois’ low-carbon future
This article offers excellent insight into how policy (politics) influences energy and energy costs.
Government is the only entity that can impose priorities on energy. That is, without environmental laws, energy production would be governed by cost and perhaps by convenience.
So when the Government (state or federal) imposes or doesn’t impose a tax or subsidizes an energy utility, it’s important.
Illinois has a history of supporting coal with tax advantages which historically has provided jobs and low energy costs; however, both have declined and could decline further due to carbon emissions and nuclear power.
Illinois has halted its support of renewable energy (created from wind, solar or water) with tax advantages. When they have supported renewables, it has favored larger utility scale renewables over smaller installations.
This article shows how two large corporations are presenting their case for economic assistance from the State of Illinois. Which one do you think deserves assistance?
In the interest of full disclosure, let me say that Realgy has built and operates four solar photovoltaic power plants in Illinois. Realgy received State and Federal tax subsidiaries and would not have done so without them.
Read the full Renewablesbiz article, “Exelon, politics and Illinois’ low-carbon future”