Weekly Basis Report Currently Focusing on Chicago
We have two days of data due to the fact that we are in a new month and currently don’t have 10 days of data to present for July.
U.S. Natural Gas Supply is Expected to Reach 110 Billion Cubic Feet Per Day by 2035, According to Navigant’s Global Energy Practice
The opening of new export facilities in the United States marks a new era for the global natural gas market, report concludes
CHICAGO–(BUSINESS WIRE)–A new report from Navigant’s global Energy Practice, the North American Natural Gas Market Outlook, Year-End 2014, examines the state of the natural gas industry and provides forecasts for supply and demand through 2035 Driven by ongoing gas shale growth in the Northeast, production of natural gas in the United States continued its strong growth trajectory in 2014, increasing by 6.1 billion cubic feet per day (Bcfd), or 9.2 percent, over the course of the year. More growth in gas production is expected in the future, particularly from the Marcellus shale formation, with the only possible constraint the rate of infrastructure development in the region. According to the North American Natural Gas Market Outlook, Year-End 2014, published by Navigant’s Energy Practice, U.S. natural gas supply is expected to increase from 72 Bcfd in 2015 to nearly 110 Bcfd by 2035.
“Supply side growth continues to drive most other aspects of the natural gas industry in North America,” says Gordon Pickering, Director with Navigant’s Energy Practice. “As we explain in the Natural Gas Market Outlook, this strong supply basis is giving rise to a new chapter of the gas industry, with the culmination of a half decade of new LNG project development and the beginning of a new, global market for natural gas.”
The opening of this new market is signaled by the opening of new export capacity on the U.S. Gulf Coast, according to the Natural GasMarket Outlook. The opening of Sabine Pass will signify the point at which North America becomes connected to the global gas market for the first time in history—with truly global consequences for gas markets in North America and around the world. Those consequences will become fully apparent as more LNG export projects come online, the report concludes.
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/
What is Weather Normalization?
WHAT IS WEATHER NORMALIZATION ………AND WHAT DOES IT MEAN TO YOU?
Weather is the most influential factor to impact your energy usage. Because weather can vary dramatically from year to year, establishing a benchmark is not as simple as comparing one year to the next. “Weather Normalization” creates a benchmark by averaging 20 years of individual daily weather information into a single year. Normalizing takes into account the effects of weather on any energy usage period (day, month or year). By doing so, you can see the effects of weather on your energy usage and plan for future weather forecasts. So if your energy consumption is sensitive to weather, and the forecast for winter is colder than normal, you could enter into an agreement to buy more at a fixed rate.
WHY NORMALIZE FOR WEATHER?
Using Weather Normalized energy usage will allow you to establish the amount of energy you will use for an average year’s weather (called your usage profile). Comparing changes between Weather Normalized usage profiles can detect deteriorations in heating plant efficiencies, uncover energy losses, or indicate increased process demand.
WHAT IS NORMAL?
This is based on a 20-year average consisting of two consecutive decades. Currently the years 1990 through 2010 are used for calculating normal. Normal weather takes into account the degree days, or specifically the Heating and cooling degree days, for 20 years. Using a 20-year normal for comparison allows for meaningful analysis vs. year-to-year fluctuations.
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.
OUTRAGISM!!!
OUTRAGISM!!!
Have you ever been misquoted, your intentions judged to be deceitful, even predatory, your reputation damaged because someones take on something you said or did was misquoted or taken out of context?
If so, you have been the subject of an OUTRAGIST (out-rage-ist).
Anyone who talks to someone is at risk of being misquoted and if you offer an opinion they don’t like, that misquote can become outrageously retold. Think of the game telephone when a story starts at one end and passes thru people until it gets to the other end; inevitability the story changes. Now, insert a person who doesn’t like something they heard, finds something insulting or is having a bad day. That person is liable to take the story and insert some outrageous statements, which then becomes “truth” to the next person to hear the story.
This is the origin of the word: OUTRAGISM. Taking something out of context because it fits with a preconceived idea … the intent or context of the original speaker doesn’t matter.
This is the idea behind Scott Adams (Dilbert creator) coining of the word. In keeping with Scott’s humor, I find labeling a situation and taking it to an extreme is humorous.
Not all criticism is outragism. Remember to look behind the statement or complaint to the origin of it and the person or company. Ask yourself: “Is it reasonable or do you think it’s a little dramatized for an OUTRAGIOUS effect?” If so, it may be OUTRAGISM!
http://blog.dilbert.com/post/109482303301/outragists-are-the-new-awful
Winter Vortex pricing under investigation
The winter isn’t over, at least not for the regulators. Price manipulation was charged during the winter from wholesale generators that bid to supply market power.
The claim is that the power producers withheld some generation (saying it was unavailable due to maintenance) thereby decreasing the supply during some peak demand.
Even though it was record breaking cold, the electric pricing mechanisms were deemed to have worked by the Federal Energy Regulators (FERC). However, that is at the Federal level and the claim is within the regional wholesale pricing.
It’s good to know that oversight is there, not sure if this will cause more transparency in pricing, but at least the cold weather is over.
Realgy has recovered all costs related to this winter’s unprecedented cold. Most utilities are collecting their costs over the next 6-12 months.
Read the full RTO Insider article, “Monitor Suggests Price Gouging by Generators”
CUB warns of electricity market ‘rip-offs’
The Citizens Utility Board is an excellent watchdog organization. Their warnings and advice could not be more timely and on target.
Saving energy plays a significant role in saving the environment. When you use energy, you should know what it costs and that you are treated fairly.
There are two components to an energy agreement, price and terms. As the saying goes, what looks like a good deal is a good deal UNTIL it isn’t. This winter has certainly exposed the insider terms of energy marketers’ agreements and how cost recovery works for the utility.
In some cases, the energy suppliers provide “teaser rates” that are below utility rates but only last from 2-12 months. You are sure you will stay on top of it but time passes quickly and the next time you look at your bill, you could be paying two to three times the utility price. These “teaser rates” have a reset price that is purposely vague or that you cannot discover from any public information. Then when you want to cancel, it becomes a voice, logic, and perseverance test from the automated answering system.
As this year’s winter showed everyone that terms are important, a low rate is fine IF EVERYTHING is perfect, but that’s not the world we are in.
Realgy is proud of our price, our terms, and our customer service team. We know we offer tremendous value compared not only to the utility, but also to any other energy supplier in Illinois. In fact we put it in writing in our agreement; we call it ServiceMatchTM. It’s simple; we guarantee to beat or match any comparable proposal for your service.
Illinois is implementing real-time metering and municipalization so the complexity in energy purchases is built in. However, in our role as energy experts, Realgy offers energy service that delivers savings in an easily understandable manner as compared to the COMED or Ameren. Call our sales team today, and you’ll understand the difference.
Read the full Chicago Tribune article, “Watchdog warns of ‘rip-offs’ in electricity market”
U.S. and World Already Affected by Climate Change
Two recent articles seem to indicate an important trend; first, the Supreme Court rules that coal pollution can be regulated and second, the White House publishes a report on the negative environmental effects that fossil fuel combustion is having on our nation and the world.
Only global leaders have the clout to tackle this issue effectively. Everyone desires the jobs associated with fossil fuel production as well as the comfort provided by fossil fuel usage; however, governments are now beginning to understand that the costs to the environment, people’s lives, and the planet are being traded off for these comforts.
As in any widespread change, the adjustment process will start small; consumers will be urged to conserve where possible and attempt to use less. Everyday consumers should make their wishes known and the leaders will listen and follow if they know what is good for them.
Realgy invests in renewable energy (over 100KW of installed solar energy) and provides natural gas, the cleanest burning fossil fuel.
Read the full NY Times article, “Climate Change Study Finds U.S Is Already Widely Affected”
Peoples/North Shore Gas Rate-Hike Request
Following on the heels of the highest gas bills in 10 years, the utility adds insult to injury with an increase in rates for delivery. Realgy agrees with CUB that the timing of this increase is insensitive at best and discouraging for many struggling with current bills.
This increase would cover the delivery service and doesn’t even address the coming increase that will be necessary by the utility for this winter’s costs.
Realgy joins CUB in challenging Peoples Gas and North Shore in order to understand the need and the reasons for the proposed increase.
We understand that investments are needed to ensure delivery and maintenance. However this winter has shown that expansion for storage facilities to provide some relief from short-term price increases would be prudent.
Peoples Gas/North Shore operates a regulated monopoly (with no competition) as opposed to your natural gas service competition; therefore the only supervision to what they charge comes from the ICCC and from interested parties (such as CUB, Realgy, and every customer).
Realgy will post messages as this rate increase unfolds and provide help in offering comments to the ICC as they review the rate increase request.
Check out the whole Citizens Utility Board Article “Statement by Citizens Utility Board (CUB) Executive Director David Kolata on the Peoples/North Shore Gas Rate-Hike Request”
Polar Vortex created record demand for natural gas
Written by Michael Vrtis, President of Realgy Energy Services in response to the USA Today article “Arctic blasts create record demand for natural gas”
The laws of supply and demand actually work; cold weather broke a 20-year record, energy consumption skyrocketed, and the prices went up.
Lake Michigan in Chicago, Illinois
How high?
The wholesale costs for January 2014 for deliveries into the Chicago market:
- Natural gas went from about $4.40 to nearly $18.00
- Electricity settled at over $0.750, where it is normally around $.035
Supply went up as the weather caused record energy demand and prices subsequently followed. No one went cold as supply kept up to demand; however, without advanced planning, you paid a lot more.
Realgy’s experience goes back to when we set the previous low temperature record. We were prepared for this eventuality, so our customers will pay far less with the use of Realgy’s ManagedPriceTM, storage, and PriceWatchTM.
Any good news?
Groundhogs Day on February 2, 2014 started with a shadow, so we should see 6 more weeks…but we are halfway through winter!
Check out the article in USA Today: “Arctic blasts create record demand for natural gas”
In Response to “Study: Solar could power more of Iowa’s energy needs”
Written by Michael Vrtis President of Realgy Energy Services in response to the Des Moines Register article Study: Solar could power more of Iowa’s energy needs
Iowa in addition to producing more corn and hogs than they consume could produce more solar energy!
GO IOWA!
In the article such factors as; declining costs of installing solar along with recognition of the environmental benefits (recognized by tax incentives) are driving such rapid growth and adoption of solar energy.
Realgy in completing 2 new installations now has 4 solar projects in Illinois generating 180,153 kWh producing roughly 0.4 % of the total energy we delivered into COMED for 2013…..while a contribution we clearly are no Iowa!
Check out The Des Moines Register article: Study: Solar could power more of Iowa’s energy needs