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
Realgy Energy Services
Realgy Energy Services was founded in 1999 by individuals who worked for many years with large utilities, energy service companies and energy marketers. Within these organizations they saw bureaucracy, the limitation of systems, software and in some cases poor management that prevented individuals from doing their job. They were determined to be different, and still are.
Two Characteristics set us apart:
First, Realgy Energy Services has invested in information technology that enables us to use our knowledge.
Second, is our ability to develop, negotiate and implement energy purchasing strategies.
In Response to “Carbon Taxes Make Ireland Even Greener”
Written by Michael Vrtis, President of Realgy Energy Services in response to the New York Times article “Carbon Taxes Make Ireland Even Greener”
Should the potential to emit greenhouse gases and deposit garbage in a landfill cost more than non-air emitting energy production and recycling?
Most states have passed laws to limit or prohibit smoking indoors primarily to protect others from the effects of second-hand smoke. Taxes on cigarettes have also increased as a way to fund prevention and reimburse states for the cost of care for those who develop diseases.
Should energy and waste be different?
Individual consumer choices of cars, appliances, and transportation have a direct impact on the emissions produced. For instance, some cars produce 80% less emissions than others for nearly the same footprint. Encouraging recycling by charging more to throw something away may possibly create some opportunities in the recycling industry. That is; there will be more people thinking about how to actually use what people throw away instead of burying it or burning it.
Whether it’s called carbon tax or not, the idea of accounting for the whole impact of energy and individual purchases (be it human health or environmental,) should be considered. It is already costing everyone something and now the question is: should that cost be shifted to those who produce more emissions and garbage?
Ireland and many states and cities are trying something else.
Check out the New York Times article:“Carbon Taxes Make Ireland Even Greener”