Realgy does not speculate on price changes
The CNBC article “Natural Gas could rise to $8: Energy expert” is an interview with a natural gas trader. One noteworthy facet of traders’ work is that they speculate on the changing cost of natural gas so as to profit from a price increase or decrease.
This is EXACTLY opposite from what Realgy does.
Realgy tries to buy natural gas so as to deliver the lowest price to our customers. The greatest variable in doing this is the changing volume of natural gas used by our customers.
Consumption or demand for natural gas; this is an instance where the trader and the energy marketer are both dependent on the weather (along with storage). Weather is the greatest driver in how much natural gas will be used; storage allows for a buffer in allowing the gas in storage to be readily available for use.
In the CNBC article, the discussion about the weather affecting consumption (withdrawals from storage equate to higher demand) is accurate. However, the coldest winter in 20 years would create disruption in any market place. So gas prices should rise when demand soars; the law of supply and demand dictates they do.
So the question is, by how much? Should they rise 27% in a day, followed by 15%, etc.? The answer is…probably not. This is when traders’ speculation drives pricing for which ALL users pay.
Realgy works with traders but does not speculate on price changes for natural gas or electricity.
Check out the CNBC article: “Natural Gas could rise to $8: Energy expert”
In Response to “Hedge funds bet on US gas shortage as cold boosts demand”
Written by Michael Vrtis, President of Realgy Energy Services in response to the Fiscal Times article “Hedge funds bet on US gas shortage as cold boosts demand”
Remember the financial crisis (is it over?)? Then this article should strike a familiar note. Hedge funds influencing the commodities market.
Inarguably the cost of natural gas has skyrocketed (some say far in advance of demand). As hedge funds buy NYMEX futures those purchases increase the prices as they create additional demand. This additional demand does nothing more than allow the hedge funds to place a bet on the NYMEX and their bet is then passed along to every user of natural gas. Accordingly, their speculation inflates the price of the NYMEX contract prices and therefore passes along these costs to ALL end-users (we call them customers) whose contract is tied to the NYMEX.
Part of the Dodd-Frank financial reform was to limit the influence of hedge fund speculating in the market.
Realgy cannot influence the NYMEX. However, the use of our proprietary ManagedPriceTM agreement minimizes reliance upon it. The ManagedPriceTM allows our energy buyers to use NYMEX, along with fixed price and INDEX purchases. The result is to minimize the impact of any single natural gas price and allow for consistent pricing that beats the utility costs. The history of the ManagedPriceTM program has shown it’s effective at mitigating short-term price spikes when used in conjunction with our Storage program and PriceWatchTM Service.
Check out the article in Fiscal Times: “Hedge funds bet on US gas shortage as cold boosts demand”
Natural Gas price increased 27% on February 18, 2014
To keep track of the wholesale prices please enroll with Realgy’s NYMEX reports. It will send you NYMEX end-of-day reports daily.
Realgy is working to ensure our pricing stays as low as possible. Given we are all dealing with the coldest winter in 20 years and the highest energy prices in over 5 years.
You’ll never hear us whine about the weather
Written by Michael Vrtis, President of Realgy Energy Services in response to the Chicago Tribune article “Feel free to whine over one of the worst Chicago winters in decades”
Raised as a Chicagoan, I recall blizzards that closed schools for weeks requiring trains to haul the snow out of the city! Of course my kids then look at me and ask about what covered wagons were like.
We were the Windy City and when the “hawk” was out, you had to bundle up. We were proud of being the city that worked hard and then worked harder when it was below zero.
The last few winters certainly have allowed us to think global warming was eliminating such winters. However, this winter will be the first winter in at least 10 years that will finish with average temperatures below normal for each month of winter (Nov, Dec, Jan, Feb, and Mar). During winter, especially winters such as this year, it’s important to be prepared for storms at your home, car, and place of business.
Realgy’s experience goes back to the last time winter weather was this extreme. That is why we have all three services in place; 1) a low ManagedPriceTM or NYMEX+ rate that is consistently below the utilities price, 2) storage gas service that makes possible winter gas use at summer gas prices, and 3) our PriceWatchTM service where our traders recommend fixed prices prior to the season (for 6 of the last 7 years this recommendation has been below the average seasonal price).
Realgy prepares for such storms every season. Our preparation is demonstrated by our consistently lower prices that you can rely on.
And, you’ll never hear us whine about the weather.
Check out the article in The Chicago Tribune: “Feel free to whine over one of the worst Chicago winters in decades”
Michigan Electric Utilities keep cap in place
Michigan continues with a 10% cap on electric choice customers enrolling with a marketer.
Michigan customers should encourage their state representatives to open up customer choice for all electric customers not just an artificial few.
2014 Cap Data (MWh)
| Electric Utility | Final 2014 Cap | Current Choice Load |
| DTE | 4,771,485 | 5,173,206 |
| Consumers | 3,633,126 | 3,978,368 |
| AEP (I&M) | 283,505 | 0 |
| We Energies | 249,619 | 2,084,930 |
| UPPCO | 87,947 | 82,947 |
| WPS | 29,188 | 21,431 |
Data courtesy of Energy Choice Matters
Source:
Energy Choice Matters, Michigan Utilities File Final Choice Caps for 2014, Space Available at 3 Utilities
In Response to “New Campaign Encourages Michigan Residents to Cut Down on Wasted Energy”
Written by Michael Vrtis, President of Realgy Energy Services in response to the Market Wired article “New Campaign Encourages Michigan Residents to Cut Down on Wasted Energy”
Public service reminders, are normally quite humble. Successful campaigns (forest fire awareness and anti-smoking) began as simple public service notices. Smokey the Bear in now part of our national consciousness and no one likes to be around smokers.
So it could be with energy. The new Michigan campaign seems so simple; energy is a cost than can be mitigated with insulation; use less to heat as leaks are found and eliminated and with more informed purchase plans.
It only takes math to figure it out; spend $100 and save $25 on energy the pay back on the $100 is 4 months.
Realgy offers lower cost ways to buy energy than the utility offers; it only takes math to figure out the savings; talk about NO DRAMA!
Stay warm and do so with math.
Check out the article in Market Wired: “New Campaign Encourages Michigan Residents to Cut Down on Wasted Energy”
In Response to “Nest Gives Google Its Next Big Data Play: Energy”
Written by Michael Vrtis, President of Realgy Energy Services in response to the Forbes article “Nest Gives Google Its Next Big Data Play: Energy”
As technology advances, so does everything else.
The thermostat remains a humble device to call for more heating or cooling to occur, but when connected to the Internet, it is transformed into a retail energy service.
Commercial businesses did this at the meter long ago and continue to do this. Certainly more utilities are moving toward implementing the capabilities of the Internet at the meter. However, Google has the interest and the financial capabilities to at least challenge the utility meter offering, if not win it.
This is a great addition to the ongoing implementation of technology into our every day.
Realgy offers choices that deliver savings. The consumer should understand the better the information, the better the energy choices. Realgy will continue to advocate for open access to any data collection device a customer or utility chooses to install.
Check out the article in Forbes: “Nest Gives Google Its Next Big Data Play: Energy”
Ten Wood-burning Fireplace Safety Tips
A nice wood burning fireplace will help decrease your winter heating bills and keep the house warm. But beware, heating fires account for 36% of residential home fires every year. Make sure to have your fireplace and chimney inspected and cleaned by a professional at least once a year. And throughout the winter, practice these 10 fireplace safety tips from Realgy Energy Services.
Five Fireplace Safety Dos:
- Use only seasoned hardwoods such as maple, oak, ash, and birch, which will burn hot and long. Green and soft woods produce more creosote.
- Check for creosote build ups. Creosote is a flammable byproduct that can build up in the chimney if wood is not burning completely.
- When building a fire, place the logs at the back of the fireplace on a metal grate.
- Install Smoke Detectors on every floor and keep a charged fire extinguisher on hand.
- The area around the hearth should be clear of decorations and debris.
Five Fireplace Safety Don’ts
- Do not use flammable liquids to start the fire; instead use kindling, or small dry twigs.
- Do not build the fire too big. A smaller fire will generate less smoke and creosote buildup. An overly large or hot fire could end up cracking the chimney.
- Never burn cardboard boxes, trash or debris in your fireplace.
- Never leave a fire unattended. Always extinguish the fire before leaving the house or going to bed.
- Never empty ash directly into a trash can. Always allow ash to cool completely before disposal.
Sources:
U.S. Fire Administration, “Fireplace and home fire safety”
DIY network, “10 tips for maintaining a wood-burning fireplace”
Realgy Energy Services has installed Two New Solar PV systems in Illinois
At the beginning of December 2013, Realgy announced the start of construction on two of its newest solar power projects in the state of Illinois. Once completed, the two new systems in total will produce over 90,000 kilowatt hours (kWh) of energy annually and offset almost 2 million pounds of carbon dioxide during the initial 25 years of operation.
The first Solar Photovoltaic (PV) system has been installed on the roof of the Lake County Fairgrounds in Grayslake, home to the historic Lake County Fair and other year-round events. The second Solar PV system was installed at Seven Oaks Farm, a historic dairy and horse farm in Saint Charles.
Both PV Systems have been installed by Renewable Energy Alternatives of Arlington Heights. “We are excited to be a part of this venture,” said Kacie Peters, Director of Sales and Marketing at Renewable Energy Alternatives. “The array is in a very public space and will be seen by thousands annually. We hope that this array will inspire others to know solar is possible—and practical in Illinois.”
“Realgy made this investment as a part of our sustainable energy commitment with the support of Illinois Department of Commerce Renewable Energy Program and the Illinois Solar Energy Association.” Michael Vrtis, President of Realgy. All of the energy produced by the panels will be used by the companies, and will reduce their reliance on fossil-generated energy produced primarily from coal in Illinois.
Don’t let Energy Vampires ruin your Holidays
Standby or vampire power as it is most commonly referred to, wastes $10 Billion of Electricity Annually in the United States alone. The average US household has about 25 electronic devices that constantly draw small amounts of power, costing on average $100 per year.
Top 10 Energy Vampires in Your home
- Laptop computers (when they are plugged in)
- Answering machines
- Computer printers
- TVs and cable boxes
- Video games
- Cell phone chargers
- Internet hubs and routers
- Plugged-in electric toys
- Night lights
- Holiday lights and decorations
How to slay the energy vampires in your home?
Minimize the amount of lights you use to decorate this year, switch to LED lights and most importantly use a timer for your holiday lights both inside and out.
Use a power strip as a central “turn off” point when you are done using equipment, which completely disconnects the power supply.
Unplug your chargers: cell phone chargers, camera chargers, battery chargers or power adapters, etc. These are drawing energy even when not in use (and even when not connected to an end-use product).
Check out the biggest Vampire Energy offenders
Sources:
Energy Star, Standby Power and Energy Vampires
Energy.gov, Are Energy Vampires Sucking You Dry?
Standby Power, Ranges of Standby Power
AOL, Energy Conscious Holiday Lighting