Illinois AG Seeks Order Requiring Capacity Supplier To Refund $428 Million To Customers
Do you remember 2015?
The State of Illinois does. They claim wholesale power generator Dynegy manipulated the entire Mid-Atlantic energy marketplace. Illinois is claiming over $428 million in overcharges as a result.
The issue revolves around a bid for power supply conducted in April of 2015 which resulted in a large price increase. The bid process (from a newly created department in Illinois at the time) has been blamed along with the response by power generators.
The large concern is that power markets cannot be manipulated by any single supplier. The federal government overseeing the involvement of the Illinois Attorney General pursuing this matter shows the staying power and time frame required to review such large and complex markets. However, it also underscores that establishing fair market rules is critical. Oversight should include ensuring that entities requesting bids understand the dynamics of the market.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. 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.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.
Additional Information: Illinois AG Seeks Order Requiring Capacity Supplier To Refund $428 Million To Customers — EnergyChoiceMatters.com
DOE EIA Weekly Gas Storage Report
Working gas in storage was 1,643 Bcf as of Friday, February 25, 2022, according to EIA estimates.
This represents a net decrease of 139 Bcf from the previous week. Stocks were 216 Bcf less than last year at this time and 255 Bcf below the five-year average of 1,898 Bcf. At 1,643 Bcf, total working gas is within the five-year historical range.
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,101 Bcf as of Friday, February 4, 2022, according to EIA estimates.
This represents a net decrease of 222 Bcf from the previous week. Stocks were 441 Bcf less than last year at this time and 215 Bcf below the five-year average of 2,316 Bcf. At 2,101 Bcf, total working gas is within the five-year historical range.
Natural gas surges 14% as cold snap ahead is expected to boost demand
US natural gas futures surged 14% in early January 2022. This is on top of recent increases beginning in the fall of last year. In early October into November 2021 oil and natural gas prices surged.
Natural gas is a commodity purchased from suppliers (including utilities) at published prices. Typically, the price referenced is the NYMEX. All natural gas suppliers are impacted by the same cost increase. However, some suppliers such as utilities can delay the impact due to their regulatory price recovery. This can be understood when utilities do not share storage with their third-party suppliers. Natural gas in storage will not increase when the market price does. Those utilities can appear to have a lower price when in fact they just bought the gas during the summer and stored it. Michigan utilities operate like this; they do not provide their customer choosing a gas supplier with their share of storage volume. Therefore, the energy suppliers in Michigan cannot readily offer storage to their customer. Illinois utilities share their storage volumes equally between choice and tariff customers. Therefore, Illinois customer choice customers have nearly 20% of their winter gas purchased during the summer. Realgy calls this our Storage Program see Storage – Realgy Energy Services.
Natural gas pricing was not expected to rise significantly. However, Covid, weather, and consumer behaviors changed that forecast.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. 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.
Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations. Currently we are in construction of our 8th project with the park district of Highland Park.
Additional Information:
How Will the Natural Gas Shortage Impact Fuel Dealers and Homeowners? – OILMAN Magazine
Natural gas surges 14% as cold snap ahead is expected to boost demand (cnbc.com)