The Debate Over Michigan’s Electricity Deregulation: Should be in favor of Energy Consumers
Customer Choice programs are well established in the utility market. In fact, a recent study covering the last 20 years concludes that monopoly utilities that have no customer choice program pricing went up over 19% more than in utility markets with customer choice.
The debate is over; customer choice lowers prices for consumers, improves power plant utilization and supports local jobs.
It does so by utilizing the wholesale market (which has abundant power reserves), buying the energy at market pricing (ensuring jobs) and utilizes the existing utilities for delivering the energy (strengthening utilities by making them more competitive so companies won’t leave for less expensive energy).
The argument of subsidy, loss of state jobs or not enough power have all been proven to be false.
Michigan should fully embrace customer choice for the benefit of its residents and the strengthening of its economy and environment.
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, MangedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional information: www.realgyenergyservices.com
Supporting Article:
http://detroit.cbslocal.com/2015/09/27/the-debate-over-michigans-electricity-deregulation-what-you-need-to-know/
and
http://www.governing.com/blogs/view/gov-local-government-electricity-competition-monopoly-challenge.html
20 Years of Customer Choice: Savings of 19%
Do you remember what you were doing 20 years ago? That’s how long ago many customer choice programs have been around.
Customer Choice is approved by a state and offered by a utility as an alternative to a utilities’ default service. By choosing a customer choice program, you are in fact, choosing only to buy direct wholesale power without ANY utility cost applied. The utility continues to provide all their traditional services such as billing, meter reading, emergency response, etc. So, the only reason to choose a customer choice offer is to provide savings compared to the utility default service. Energy marketers, those approved by the state and local utilities, contact with customer directly to serve them the wholesale power.
So after 20 years how does customer choice compare to utility default service. How does 19% sound?
That’s right. Utilities with only default service were 19% higher than utilities with customer choice over the last 20 years.
Many detractors have tried to make arguments that customer choice wouldn’t work by suggesting subsidies, not enough power is available, it would weaken the utility, loss of jobs, etc. However, this study, and others like it, have demonstrated that a customer choice program offers energy consumers a viable option other than default service by the utility. Energy marketers, in turn, purchase energy in the wholesale market (improving utilization of existing power plants), delivery it through the utility (increasing their revenues) and saving residents money (retain local jobs as business don’t move to chase lower energy costs).
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, MangedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional information: www.realgyenergyservices.com
Supporting Article:
Is DTE afraid of competition?
Michigan utilities lobbied hard to reduce the Michigan Customer Choice program to no more than 10%. That is; only 10% of Michigan customers can chose an energy supplier (all customers still get energy delivered by the utility). The result; those that are in the 10% are enjoying savings compared to their utility. One example in Michigan, 400 public schools saved over $40 MILLION last year. On average, states without competition through energy choice pay 25% more than states with customer choice.
Examples of two different states: one with customer choice and one without:
In Illinois (with customer choice), competition saved over $37 BILLION: http://realgyenergyservices.com/competition-work-tune-37-billion/
In Indiana (without customer choice), ranking on lowest states for electricity costs went from 5th lowest in the Nation in 2003 to 26th in 2014 (electric rates went up)! http://realgyenergyservices.com/indianas-electric-rate-hurts-competitiveness/
So why not expand Customer Choice for 100% of customers? According to DTE their reasons are:
- There will be a shortage of energy supply
- We do it in Ohio and elsewhere and that different
These reasons are throwback to the 1950s. DTE is not responsible for energy supply in the state this ended long ago. A larger regional entity called MISO is. DTE supports customer choice in Ohio and elsewhere. The apparent reason Michigan does not having a robust customer choice market; incumbent utilities donate/lobby legislators that in turn support the utilities.
Realgy supports customer choice for energy. Our experience has demonstrated that it saves consumers time and money in energy use and decisions.
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.
Additional information: www.realgyenergyservices.com
Supporting Article: http://blogs.detroitnews.com/politics/2015/08/11/charged-dte-misses-point-choice-works/
Indiana’s Electric Rate Hurts Competitiveness
One measure of competitiveness is the price of electricity in a State.
Indiana has gone from 5th lowest in the Nation in 2003 to 26th in 2014 (electric rates went up)!
Surrounding States have all improved (lowered their electric costs).
A major difference: all surround States have implemented electric choice.
Electric Choice allows customers to purchase their energy from a wholesale supplier without any utility markup. The idea: give customers a choice and direct access to the energy markets and have competition do what competition does; lower costs and improve services.
In Illinois, not exactly the most business friendly state for taxes, electric savings have exceeded $37 BILLION. http://realgyenergyservices.com/competition-work-tune-37-billion/
In NIPSCO and Citizens Energy, where they have customer choice programs for natural gas customers, Realgy’s average customer is saving money monthly:
- Citizens Energy: over last 36 months savings of $6,643: http://realgyenergyservices.com/service-plans-52/
- NIPSCO: over last 36 months savings of $6,581: http://realgyenergyservices.com/service-plans-47/
In Indiana: some of the biggest utilities do not offer customer choice for natural gas service; this includes Vectren, Duke and AEP. No utility in Indiana is offering customer choice for their electric service.
Competition in energy markets has been demonstrated to lower costs. Surrounding States’ to Indiana have lower electric costs in-part because of implementing electric choice. Natural gas costs are more competitive in NIPSCO and Citizens due to customer choice.
Realgy supports customer choice for energy, our experience has demonstrated that it saves consumers time and money in energy use and decisions.
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. Additional information: www.realgyenergyservices.com
Supporting Article: http://www.nwitimes.com/business/industry-indiana-electric-rates-hurt-competitiveness/article_a10b7072-4e2f-51a7-8ed0-0b99c4e4ce01.html
Cost Regulations
2015 ENERGY REGULATIONS LEAD TO HIGHER EQUIPMENT COSTS, BUT WILL THEY HELP YOU SAVE ON ELECTRICITY AND NATURAL GAS?
The Department of Energy has implemented new efficiency regulations on electric and natural gas water heaters as well as air conditioning equipment for 2015. The standards will make new equipment slightly more energy efficient, however, the savings will, for the most part, be insignificant. The increased cost of new equipment will be pricey for homeowners upfront. The resulting savings per household for reduced electricity and natural do pay for the upgrade.
The air conditioning equipment regulations went into effect on January 1, 2015. They apply to split air conditioners and heat pumps as well as traditional central AC compressors. The regulations call for new equipment to increase the Seasonal Energy Efficiency Ratio (SEER) from 13 to 14. The one point SEER increase is fairly negligible from a cost savings standpoint, but the reduction in energy usage across millions of household will add up. The one point translates to roughly 7% electricity savings per year for the average household. Based on national electricity usage and cost averages this would equate to savings of approximately $18 per year.
The most significant referenced downside associated with the new HVAC regulation revolves around the higher cost of the equipment and installation. New equipment will be larger and will likely require most all parts of the AC system to be replaced, not just the compressor. Also, because the equipment will be larger, some very small homes may require modifications to accommodate the larger equipment.
Regulations affecting water heaters run by electricity and natural gas took effect on April 16, 2015. The pros and cons parallel that of the AC standards. The new efficiency guidelines have resulted in more costly equipment. By some estimates new water heaters will cost roughly $120 more. In addition the new equipment means a more complex, time-consuming installation with more expensive parts. Electricity and natural gas savings will vary widely based on the size of your tank.
The changes the US Government is taking are part of a larger trend by all governments worldwide towards implementing more energy efficient regulation. Initial upfront cost is certainly a factor taken into account by such regulations, but cited more frequently are the health and environmental benefits that will compound yearly as a result of reduced emissions and improved air quality.
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 savings. Additional information: www.realgyenergyservices.com
The Cost of Lighting
TODAY’S LIGHT BULBS CAN SAVE YOU MONEY ON ELECTRICITY, BUT DID YOU KNOW THAT YOU CAN ALSO SAVE ON THE ELECTRICTY ITSELF?
The light bulb has come a long way. Today’s bulbs last longer and use less electricity, but despite the advances in technology they still lead to the consumption of considerable quantities of energy for residential and commercial electricity users. Lighting is responsible for consuming the second largest quantity of electricity in US homes, behind air conditioning. Moving towards a more efficient lighting solution with high efficiency light bulbs is a great way to save money on electricity, but some residents and businesses don’t realize that they could be paying less for the electricity itself.
Let’s first look at the light bulb as a source of savings. New laws have raised minimum efficiency standards for traditional incandescent light bulbs. Incandescent bulbs use a lot of energy to produce light; about 90% of their energy is given off as heat. The new laws require the most popular 60-watt bulb, for example, to be roughly 25% more efficient. Today’s two most popular alternative bulbs far exceed those regulations. They are the compact florescent lamps (CFL’s) and light emitting diode (LED). CFL bulbs that are energy star qualified use about 75% less energy, and can last up to ten times longer than traditional incandescent. LED’s use about 85% – 90% less electricity and will last up to twenty five times longer. Furthermore, LED bulbs continue to improve in efficiency and quality. The below chart shows how LED bulbs compare to the other leading options.
New lighting technologies make it possible for both residential and commercial electricity customers to cut energy usage and reduce electricity costs, but now let’s consider the electricity itself. Not everyone is utilizing the most efficient solution available. Utilities provide one option, however residential and business customers have the option to choose their electricity provider in markets with electric choice. The right provider can often help deliver the same electricity for less than the utility.
Realgy Energy Services provides an excellent alternative to the utilities by helping customers accomplish their energy savings goals through strategic energy plans. Realgy Energy Services spends 1-2 years conducting analysis and modeling area’s energy requirements, energy costs, utility delivery rules, etc. As a result when we approach potential clients we are ready to offer an effective plan that will provide real savings. When you combine the lower cost of your energy consumption by using energy efficient light bulbs, with the lower cost of the electricity, the savings can be significant.
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. Additional information: www.realgyenergyservices.com
City of Warsaw
WARSAW, Indiana (April 17, 2015) The City of Warsaw Board of Public Works and Safety (Warsaw) has issued a request-for-proposal for natural gas to service its 21 meter locations. Realgy Energy Service, a wholesaler or third party supplier in the NIPSCO Choice program, responded with a proposal that showed savings compared to the current supplier which showed an estimated savings $10,000 to 15,000 for the last year.
“We are thrilled to be able to offer Warsaw a true savings program.” said Michael Vrtis, President of Realgy Energy Services. “We submitted our analysis and agreement that substantiated the estimated annual savings Warsaw can expect to receive from purchasing their natural gas directly from a supplier without any NIPSCO Gas markup, which will provide significant cost reductions.”
The NIPSCO Choice program was initiated by NIPSCO as an opportunity for customers to purchase their natural gas supply directly. NIPSCO is currently the only utility in Indiana offering customer choice to all levels of customers; from residential to industrial.
Warsaw Clerk-Treasurer Lynn Christiansen was given the approval, with a stipulation, to drop the city’s current natural gas supplier, IGS Energy, formerly Border Energy, and sign a two-year contract with Realgy Energy. A study showed Warsaw has been paying IGS more than what NIPSCO would charge and a switch would save Warsaw an estimated$10,000 to $15,000 a year on gas costs. There is no cost to sign the contract with Realgy.
Lew Roberts of Go West, Realgy’s representative, recognizes the challenges faced by cities and municipalities in Indiana. We approached Warsaw with a Managed Price program. Mr. Roberts explained; “having over ten (10) years of service in the NIPSCO Choice program we were able to show consistent performance and real savings compared to NIPSCO and even more compared to IGS Energy.” Mr. Roberts continued; “Working with Warsaw Mayor Joe Thallemer and the board members, together they quickly understood they were overpaying with their current energy marketer and appreciated the new approach.”
Realgy Energy Services is an energy marketing serving retail customers in Indiana, Illinois and Michigan. They have been serving Indiana customers since April 2003; since that time they have a perfect record (certified A+) with the Better Business Bureau; http://ct.bbb.org and no complaints before the IURC http://www.in.gov/iurc or OUCC http://www.in.gov/oucc/
Contact:
Michael Vrtis
President
Realgy Energy Services
860-233-2270
Ameren Capacity costs increase 10 fold, what does it mean?
It was big news; the wholesale energy market in Illinois received National attention …for the highest capacity costs in the Midwest (for the wrong reason)!
The wholesale price went from $16.75 per MW-day to $150; a near 10 fold increase for the coming year.
What does that mean if you are an Ameren customer:
- Everyone who takes electric service from Ameren will pay more.
- Residential customers about $150 more
- Industrial customers anywhere from $10,000 to $1,000,000 / month
- If you are an energy customer with an energy marketer
- Your costs may not go up, however watch your bill
Can you avoid this increase: YES
Realgy contracts with the power suppliers that are not covered by the Ameren bid process. Realgy’s capacity costs have not increased.
Realgy Energy Services is a registered Retail Energy Supplier in Illinois serving COMED, Ameren and MidAmerican – Illinois.
Please contact us to discover how we can save you on your natural gas and electivity while providing award winning service: A+ rating with the Better Business Bureau.
http://www.midwestenergynews.com/2015/04/22/illinois-lawmakers-question-miso-about-capacity-auction/
Chicago sending city households back to ComEd
Crain’s recently reported that after more than 1 year of charging customers MORE than COMED and the City will send them back to the utility (AFTER the summer)!
http://www.chicagobusiness.com/article/20150421/NEWS11/150429969
No one likes an “I told you so”…..so I won’t say it.
One year ago: I posted: Chicago electric bills to rise up to 18% in June
http://realgyenergyservices.com/chicago-electric-bills-rise-18-june/ which included the following:
The idea is that “aggregation” of the residents will provide the marketer the ability to deliver a lower price. If that were the case, no one could beat the utility because the question is who would be a bigger aggregator than a utility? The utility AGGREGATES everyone in the state. Yet, Realgy beats ComEd and Ameren consistently. So why can’t municipalities come in lower?
The difference is cost of service and overhead.
Municipalities require energy marketers to deliver savings compared to the utility, take on billing and collections, and pay the municipality a portion of the margin. The simple fact remains; the cost municipalities want to collect makes them higher than the utility.
Realgy continues to post savings compared to both COMED and Ameren.
To learn more about how Realgy Energy Services’ variety of programs that can help you save money on electricity, call 877-300-6747, or visit www.realgyenergyservices.com.
Realgy Energy Services is a registered energy marketer with a A+ rating with the Better Business Bureau and able to save you money on your natural gas and electricity usage anywhere in Illinois.
Electricity Savings with Fixed Pricing
SETTING A FIXED RATE FOR ELECTRICITY IS A GREAT WAY TO SAVE…IF IT’S BELOW THE UTILITY’S PRICE
We all look for ways to save. Oftentimes savings opportunities exist, but we’re not aware of them, or we’re too busy to look into them further. COMED and Ameren forecast their summer rates in early Spring….that’s the time to lock in a fixed rate for the upcoming summer. Setting a fixed price for more than one season means you will probably pay more than the utility during the next season.
SAVE AND MANAGE YOUR BUDGET
Budgeting for electricity for an entire year can be a challenge due to fluctuations in usage. Colder month prices are typically lower, as usage is less. Prices jump during the summer months as demand increases. So how do you make spending more predicable? By setting a fixed price during the highest cost season (summer) when demand is highest. During winter a variable rate allows you to save when prices decline.
WHEN TO LOCK IN A RATE
The best way to save on electricity is to think seasonally. Since demand is at its peak in the summer months, setting a fixed rate for this period will provide a level of assurance, and can help you save. With Realgy’s PriceWatchTM we will watch market prices, utilizing our proprietary trading and computer services, and alert you when a fixed rate is in line with your budget and can beat the utility.