EIA Weekly Natural Gas Storage Report
Working gas in storage was 3,099 Bcf as of Friday, August 21, 2015, according to EIA estimates. This represents a net increase of 69 Bcf from the previous week. Stocks were 480 Bcf higher than last year at this time and 88 Bcf above the 5-year average of 3,011 Bcf.
EIA estimate 58-62 Bcf
Actual 69
A consensus of analysts surveyed by Platts expects the US Energy Information Administration on Thursday will estimate a natural gas storage injection of between 58 Bcf and 62 Bcf for the reporting week that ended August 21. An injection within expectations would be less than the 77-Bcf injection reported at this time in 2014 and similar to the 61-Bcf five-year average injection, according to EIA data. The wider range of analysts’ expectations for this week was for an injection of 47 Bcf to 67 Bcf. “US demand rose modestly from the previous week and averaged just above 64.5 Bcf/d during the week,” said Bentek Energy, an analytics and forecasting unit of Platts. “However, this did not translate to lower injection activity, as Bentek’s sample injections increased within both the East and Producing regions compared to the previous week.”
DC Regulators reject Exelon; no public benefit
A public utility actions (expenses) must benefit the public; simple right but so often this is not the focus of the utility executives or the regulators.
Reviewing the cost vs. benefits the regulators in Washington, DC rejected Exelon’s bid for BGE citing that Exelon’s takeover did not demonstrate benefits to its customers. Bravo!
As previously cited, there is little reason for a public utility to acquire another utility, especially one that does not share a border.
Putting the focus on customer benefits verse stockholders the DC regulators did their job. Applause.
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://realgyenergyservices.com/comed-parent-company-pay-6800000000-east-coast-utility/
http://www.energybiz.com/article/15/08/dc-regulators-reject-proposed-merger-exelon-pepco?utm_source=2015_08_26&utm_medium=eNL&utm_campaign=EB_DAILY&utm_content=4521
Communications take effort, does yours?
6 Common Communication Mistakes that You May be Making by Ann Meacham
Communication can make or break our world. Bad communication leads to broken relationships: with the people who work for you, with you, your clients or customers, your family, your at-large community.
6 Common Communication Mistakes that you might be making:
1. Not using “we” language.
Newsflash: Relationships are not a competition. Or at least they shouldn’t be. When you start to think in terms of “me” and “you”, it’s time re-frame the conversation and think of yourselves as a team. Work to solve a problem, not to be victorious.
2. Not giving eye contact.
When people are not looking at you when you talk, how does that make you feel? Not good. Right? So try living by the golden rule and give other people the same courtesy that you want to be given.
3. Interrupting.
What does it say to someone when you interrupt them? It says, “What I have to say is more important than what you have to say.” This can be a result of excitement or a desire for power. Either way, it still says, “I’m more important than you.”
4. Making assumptions before you hear the whole message.
You have probably had the thought, “Oh I don’t even have to hear the rest of this – I already know what they’re going to say!” Well, maybe you do, and maybe you don’t. Don’t do that. We don’t like when people make assumptions about what we are saying, so don’t do that to other people either.
5. Not asking probing questions of other people.
Saying things like, “Tell me more about that” or “So how did that make you feel?” lets the other person know that you care about them enough to ask for more information. That’s called a probing question. Ask people to elaborate. It makes them feel good and shows that you’re interested. (Always open-ended questions. Never ask “why.”
6. Needing to “win” an argument.
I repeat… Relationships are not a competition. Admitting that you’re wrong is not a sign of weakness. It is a sign of maturity. No one is right all of the time. Don’t think you have to “win.” Acknowledging your mistakes will not give away your power. It shows that you are the better person because you can be honest.
Being a good communicator takes effort. It’s like being a good athlete – you have to practice if you want to be good at your craft!
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://blogs.detroitnews.com/politics/2015/08/11/charged-dte-misses-point-choice-works/
Weekly Basis Report
DEFINITION of ‘Futures Market’
An auction market in which participants buy and sell commodity/future contracts for delivery on a specified future date. Trading is carried on through open yelling and hand signals in a trading pit.
Read more: http://www.investopedia.com/terms/f/futuresmarket.asp#ixzz3in48jxPn
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/
MidAmerican aiming for 57% of energy from wind
In another sign of the growing importance of renewable energy, MidAmerican is proposing to construct a wind farm in Iowa that could provide more than HALF of the total energy it delivers.
Certainly more will be heard once the federal government releases more details about the Clean Power Rules. However, this is another example of how renewable energy (solar, wind and hydro) is becoming more common and reliable.
Consider that a utility like MidAmerican, that has tremendous coal resources, is willing to commit more than half of its expected need to renewable energy is a testament to the reality of climate change and that renewable energy is economically competitive.
May the times, continue to change.
Supporting Article:
What should the cost of electricity be?
What should the cost of electricity be?
Electric utilities are paid based on maintaining their distribution network (wire, poles, transformers, etc.) within their service area and receiving payments based on the cost of providing that service plus a profit. The electric utility business is a monopoly in that there is no competition to their service; therefore, their costs get scrutinized to determine if they were spent appropriately. Those costs that are deemed appropriately spent on necessary service are repaid plus a profit.
However, the price of electricity is no longer a monopoly. Electric pricing in Illinois is based on market conditions of supply and demand.
Most electric power in Illinois is purchased by customers (not utilities) and those purchases are direct between the customer and the energy supplier (marketer). That actual electricity comes from power plants. All the electricity purchased by customers flows through the utilities distribution network (COMED, Ameren or MidAmerican).
Large electric generators, like nuclear power plants, receive preference in operating due to the fact that they are most efficient when operating at full power. Smaller generators including coal and solar plants bid a price in the hopes of selling energy at that price.
Exelon, the owner of several nuclear power plants, is threatening to shut down 1 or more plants in Illinois UNLESS they get paid more.
Exelon is the parent company that owns many electric power plants and four large utilities (including ComEd and BGE).
Exelon’s threat seems to be a case of having your cake and eating it. They own utilities so they earn profit for spending money to provide service and they own power plants that must compete to earn money. They know the difference and should not try to alter market pricing to get preferred pricing.
Illinois should not reward Exelon’s bullying with more profit. The market can make up for the loss of electricity from shutting down inefficient power plants.
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 Articles:
Chicago Weekly Basis Report
What are basis? it’s the price difference between the price of an energy in one market and the price of an energy commodity in a completely different market.
Locational basis is the “different” market can be at a different location
Calendar basis risk, or calendar spread risk, is the risk that arises from hedging with a contract that doesn’t expire on the same date as the underlying exposure.
As an example, a large consumer of gasoline might decide to hedge their exposure to gasoline price by purchasing NYMEX RBOB gasoline futures. In this example, the consumer is exposed to calendar basis risk as NYMEX gasoline futures expire on the last day of the month prior to the delivery month i.e. the October 2013 RBOB gasoline futures contract expired on September 30, 2013. While many might assume that this consumer has no choice but accept the basis risk. There are other instruments which will allow them to mitigate their exposure to calendar basis risk.
What country produces over 100% of its electricity by wind power alone?
Denmark Just Produced 140% Of Its Electricity Needs Via Wind Power
…and exported the excess supply to Germany, Sweden and Norway. Imagine: 100% sustainable energy.
The majority of Denmark’s wind farms are located off-shore (nearly invisible from land). The US just approved its first off-shore windfarm…..perhaps 1 day we could be like Denmark!
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
Realgy owns and operates 4 solar plants located in Illinois producing nearly all the energy Realgy consumes in a year.
Supporting Documentation:
Read More: http://www.trueactivist.com/denmark-just-produced-140-of-its-electricity-needs-via-wind-power/?utm_source=fb&utm_medium=fb&utm_campaign=tmu
Where are the differences between an electric utility, Government regulators and energy companies in delivering renewable energy?
Look at the differences that emerge when an energy company wants to deliver wind energy generated in one state across three states.
The players:
- Utilities: these are regulated monopolies that generate and delivery energy to customers within their franchised area
- Government Regulators: oversee Utilities within their state
- Energy companies: offer alternative energy service to customers wherever customer choice is allowed
Today, there is no National Energy Policy which encourages the distribution of renewable energy. Utilities are required to look only within their state. Government Regulators oversee Utilities only within their state. Energy Companies which are not bound by state boundaries look to address the national need for clean, renewable energy.
A power line in Missouri was denied by the Missouri Regulators because it did not show enough benefits for state residents. However, it should great benefit to the Country.
While the Federal Government promotes the installation of renewable energy, this example highlights the need for a National Energy Policy to support competitive energy supply at the wholesale transmission level.
By way of background, Utilities have separated their business into 2 different parts; energy supply and distribution (delivery of the power through the wires). A utilities’ business remains the same; provide electric service within their franchised area or jurisdiction. However, most states have introduced competition for energy supply. Competition allows Energy companies to serve business or residential customers directly by offering a wholesale electricity price that the Utility cannot markup or add additional costs.
Electricity is generated and traded at a wholesale level on a regional basis. Utility Regulators oversee the utilities within their State. Energy Companies usually acquire wholesale power at the regional level and have it delivered to the local Utility. The Utility still delivers the electricity regardless of who you bought it from.
Government Regulators oversee Utilities because they still have a monopoly to serve customers. The Regulators job is to oversee the Utilities within their State and review the costs and expenses of the Utility. A Utility recovers costs incurred in providing service to customers (delivery and energy supply) which are approved by Regulators.
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 Documentation: