In Response to “Natural Gas a Raging Bull in Its Battle With Coal”
Written by Michael Vrtis President of Realgy Energy Services in response to the CNBC article “Natural Gas a Raging Bull in Its Battle With Coal”
The thinking has always been that the US will lead in coal use as we have the largest supply in the world. In our history, coal has contributed no less than 50% of our total electrical energy needs.
Today with the technology of “fracking” the US has discovered an abundance of recoverable natural gas. So much so that US natural gas prices are nearly $2.00 less than the average world price for natural gas (this is a huge economic advantage when you consider our cost for natural gas is about $3.00).
So abundant natural gas drives the cost lower, and so with the lower cost and long term supply natural gas takes market shares from its closest rival; coal. The benefits of this economic decision have environmental benefits.
All sounds great right?
Diversity in our generation supply (a mix of natural gas, coal, nuclear, wind, solar, wave, etc) makes our electric supply gird stronger and more competitive. Consider if we had discovered this natural gas field and had not developed the technology to generate electricity from it more efficiently.
Nothing last forever; while 100 year supply sounds great. Its only one lifetime! This is where US Energy Policy has to step forward. The US should continue to invest in new technology that will not let us deplete the natural gas richness of this country and leave our children more dependent on electric energy without developing a replacement.
Check out the CNBC article: “Natural Gas a Raging Bull in Its Battle With Coal”
Are you ready for the summer heat?
On top of our low competitive energy rates, Realgy Energy Services also provides our customers with even more ways to save money and energy. Here are some helpful tips towards lowering your utility bills this summer.
Take advantage of the sun and turn off the lights to enjoy the “day lighting”. If you must use the lights this summer, replace those used most often with CFL or LED bulbs. Incandescent lights give off more heat than the newer energy efficient models. If you replace one traditional 100W incandescent bulb with an Energy Star CFL light bulb you could save up to $6 a year in energy costs In just two years, these bulbs will pay for themselves.
Heating and cooling accounts for up to 40% of energy consumption in commercial buildings and almost 56% in residential buildings. Make sure your AC is equipped to run efficiently. If you have not already, schedule an AC tune up with a certified HVAC contractor. The contractor can point out and repair minor issues before they become huge problems and ensure it is running at its most efficient. You should plan to have your AC tuned up every two years, or every year if it is used frequently.
Air conditioners will run at their optimal performance level when set at 78 degrees. Making it even 5 degrees lower will result in your AC using up to 40% more energy. Keep that thermostat at 78 degrees during the day and turn it down at night, to conserve the most energy.
78 degrees is the magic number with ACs
Ceiling fans create a wind chill effect that will allow you to raise the thermostat about 4 degrees without any reduction in comfort. Just remember to turn off the fans if nobody is in the room.
Avoid using electronics or anything that generate lots of heat such as computers, ovens, even incandescent lighting. By reducing the amount of heat that is generated you can reduce the cost of cooling that area.
These simple tricks can drastically reduce your energy consumption and costs.
Sources:
U.S Department of Energy, Energy Savers, Thermostats and Control Systems
Edison Electric Institute, Energy-Efficient Tips and Products for Commercial Use
Enter the $50 Energy Efficiency Contest
Summer is here, and so is the heat! Stay cool this summer and win a cool $50 by entering the $50 Energy Efficiency Contest on the Realgy Energy Services Facebook Page.
Tell us how would you use $50 to make your home or office more energy efficient?
Tell us how you would use $50 to make your home or office more energy efficient and you could win a $50 Home Depot or Lowes gift card to put your ideas to the test. If you need some inspiration, make sure you check out our regular blog posts on how you can save money on your energy costs.
One gift card will be given out each month (July and August) by the Realgy Energy Services Team. Let us know your ideas and plans to get in on the energy and money saving action now.
Your plans do not have to stay within the $50 budget; just tell us what kinds of things you could do to your home to save money while making your home use less energy. Some ideas may include keeping the thermostat set higher, or installing a new ceiling fan. Get creative, and you could win a $50 gift card to help you on your way toward some real home improvement.
10 Reasons why you should not Budget Bill
Budget billing is a payment plan with your utility company to even out your monthly bills throughout the year. Although it sounds like a great idea, there are some disadvantages.
- Administrative fees – Some plans charge administrative fees which add to the total cost of your monthly bill.
- Fuel assistance – Low income customers who would normally qualify for fuel assistance to help with energy bills may not qualify if they use a budget billing plan.
- Balance due – If your energy bills for the year exceed your monthly payments, you will be required to pay the balance due. This defeats the purpose of budget billing and creates a real hardship for some customers on fixed incomes.
- May not be eligible – All budget billing plans are different but some may require a minimum 12 month billing history with the current utility company. If you recently moved to the area or have a bad credit history, you may not qualify.
- Strict payment rules – There is little patience for delinquent payments under most budget billing plans. Paying your bill late may result in being disqualified from the budget billing plan or having your power shut off.
- Quarterly adjustments – Some utility companies will adjust the monthly budget billing amount on a quarterly basis, so if you were planning your budget on a set amount for the full year be wary, it may change.
- May not get refunded – The hope is that if your payments exceed the amount of power used throughout the year that you will get a nice refund. Depending on your contract, that may not be the case.
- Moving – Depending on the timing and terms of your contract, there could be complications and extra fees if you plan on moving.
- Complicated contracts – Make sure you read the contract very carefully and understand all the terms and conditions.
- No Savings – While budget billing will even out your monthly bills you will still end up paying the same rate for your energy use as you would have if you were not signed up for budget billing.
The only way to truly lower your utility bills would be by enrolling with a Registered Energy Supplier like Realgy Energy Services. Check out Realgy Energy Services rates for June 2012 and see how much you could be saving www.realgyenergyservices.com
4 Reasons why Natural Gas is So Cheap
1. Markets are Local
Natural gas from American wells is transported through pipelines on land across the US. Unlike oil which must be shipped in from overseas
2. Mild Winters
The mild winter of 2011 resulted in less demand for natural gas to heat homes, leaving suppliers with too much natural gas still in storage.
3. Fracking
Fracking has greatly increased the supplies of natural gas in America.
4. Lack of Consumer Demand
Only 19% of natural gas consumption in America is used by end consumers, 31% is used to create electricity in power plants and 28% is used in industrial settings.
Read the whole story at Investopedia
What is budget billing?
Many utility companies offer a budget billing plan to their customers. This basically means that you will end up paying a set amount each month for your utility bill. Your utility company will generally take an average of your past energy usage and estimate future gas or electric costs to come up with your monthly set amount. While this may seem like a great idea, you should carefully consider several things before enrolling.
First you should find out if a refund or credit will be issued if less energy is used. Some utility companies may not issue a refund if less power is used than planned. Additionally you may need to set aside extra money to cover the cost after the settle-up if more energy was used than the utility planned for.
Second you should also look at administration fees associated with the service. Many will charge a monthly fee. The fees will vary from utility to utility, but anything more than two or three dollars a month is too much for this service.
Third you should consider the contract that you sign when enrolling for the budget plan offered by your utility. There may be penalties applied if you move or turn off the service. For example you may end up paying extra when you move if you have used more power than was budgeted.
Fourth if you are enrolled with a Registered Energy Supplier such as Realgy Energy Services, it is important to find out if all charges will be covered under the budgeted amount. Some utilities will not allow for budgeting if the customer is enrolled with a supplier.
It is important that you fully understand what you are signing up for, check out your local utilities website before signing up for a budget plan or request to see a copy of the contract.
However, the easiest way to reduce your monthly utility bill would be to enroll with a Registered Energy Supplier to lower your energy rates, check out Realgy Energy Services rates for June 2012 and see how much you could be saving www.realgyenergyservices.com.
In response to “Fracking is Misunderstood”
Written by Michael Vrtis President of Realgy Energy Services in response to the Forbes article “Fracking Is Misunderstood, It’s The Key To Energy Self-Sufficiency”
This article articulates that the US should embrace fracking on the basis that it can lead to energy independence. Given the free-trade mantra advocated for years if not decades I chuckle at the thought of independence in energy.
So what does fracking mean to you and the US?
- Fracking will evolve as a technique for extracting natural gas.
- Its impact on the US cannot be understated; this is like finding a Saudi Arabian natural gas field in our backyard!
- It has the potential to keep the US below the world market price for natural gas for decades to come (currently by almost $5.00 / Dth)
- Manufacturing will return to the US to take advantage of lower energy costs
- Air pollution will decrease in the Northeast US
- The EPA will regulate the fracking fluid and will require ground water and aquifer monitoring; this is a responsible position and will prevent restricting the fracking technique
Instead of politician trying to seek energy independence I would like to see them embrace natural gas and encourage its use as a transportation fuel. This will reducing oil imports of which 60% is used as transportation fuel.
Forbes, “Fracking is Misunderstood, It’s the Key to Energy Self-Sufficiency”
Natural Gas Safety
Natural gas in one of the safest energy sources available; it is non-toxic and has no odor in its natural form. Natural gas will not ignite by itself, but combined with air and a spark it will catch fire.
When not burned completely natural gas produces carbon monoxide (CO), which can cause flu-like symptoms including:
headaches, nausea, dizziness, drowsiness or fatigue, burning eyes, confusion and loss of coordination
Over 10,000 people receive medical treatment and hundreds die each year from carbon monoxide poisoning. In many cases, victims are aware they are not well, but become too disoriented to save themselves. Particularly vulnerable are pregnant women, small children, senior citizens and people with heart or respiratory problems.
It is always recommended to have a working CO detector in your home or business if you use natural gas as an energy source.
In its natural state natural gas has no smell, so your utility company adds a chemical odorant called methanethiol to help make natural gas leaks easier to detect. If you smell rotten eggs, it’s most likely not a well hidden Easter egg, but a natural gas leak, leave the building and call your Utility Company right away. You can find an emergency hotline on most utility invoices if there is not emergency number call the customer service number.
Learn more about Natural Gas Safety and Emergency Procedures:
Nipsco, Stay Safe “Natural Gas Leak Emergencies“
Semco Energy, Safety and Emergency Information “Reporting a Gas Leak”
DTE Energy, Safety “Natural Gas Safety”
Citizens Gas, Safety “If You Smell Gas”
Michigan Gas Utilities, “Emergency Procedures”
Nicor Gas, Safety “Emergency Information”
Consumers Energy, Safety “Gas Leaks and Safety Tips”
Peoples Gas, Safety “Emergency Procedures”
North Shore Gas, Safety “Emergency Procedures”
Homes with Natural Gas appliances save approximatly $518 annually
According to The American Gas Association households that have natural gas appliances, such as cooking ranges, clothes driers and heaters save about $518 compared to homes that use electric appliances.
Benefits of using natural gas for key appliances includes:
Lower energy bills
Decrease in greenhouse emissions and pollutants (up to 37% less emissions compared to electric appliances)
Safety and Reliability
“The direct use of natural gas provides three times more useful energy to consumers than electricity,” said Dave McCurdy, president and CEO of AGA.
To read more about the benefits and savings of natural gas visit the American Gas Association website
Why some organizations might be slow to invest in energy efficiency
Energy costs in a typical office building make up about 1/5 of all operating costs, but organizations are slow to invest in energy efficiency.
Check out this great article How energy efficiency investments can enhance a business’s bottom line by reducing operating costs on Smart Business to learn why these organizations might be dragging their feet when it comes to energy-efficient upgrades.