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
More Americans are concerned with reducing Energy Costs than going on vacation this summer
According to a poll by the AP -NORC Center for Public Affairs Research which surveyed 1,008 Americans nationwide, most Americans are more concerned with savings money on Energy Costs, than taking a summer vacation or having the latest electronic. In fact saving money on energy costs came in second only to having reliable transportation.
The most common ways American are choosing to reduce energy costs include turning off lights, turning down the heat, installing energy-saving appliances and driving less. While Americans are generally aware of the most effective ways to save energy, they report that many of these actions would be extremely or very difficult for them and their families to implement in the next year.
However, there is another way to cut energy costs that is very easy and requires just a phone call. Third party suppliers such as Realgy Energy Services supply the same energy at lower rates than your local utility. Check out Realgy Energy Services rates for June 2012 at www.realgyenergyservices.com or call one of our Energy Brokers 877-300-6747 to learn more.
Learn more about the AP-NORC Center for Public Affairs Research poll on Energy Issues:
Associated Press – NORC Center for Public Affairs Research, Energy Issues: How the Public Understands and Acts
Star Tribune, How the AP-NORC Center Poll on Americans’ energy priorities was conducted
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”
In Response to “IBM’s Battery 500 Project”
Written by Michael Vrtis President of Realgy Energy Services in response to “IBM’s Battery 500 project”
The known amount of natural gas in the US has increased over the last 5 years to the point that it now represents over 20% of all the US’s energy reserves (remember some call the US the Saudi Arabia of coal). The natural gas recoverable by the use of hydraulic fracturing (fracking) is a game changer for the US.
Map of Shale Gas in the US courtesy of US EIA (July 2011)
There is discussion among business leaders (not politicians) that the conversion to natural gas vehicles and investment in natural gas distribution could reduce oil imports over 60% within 5 years! This is not a political aspiration it’s business.
How has the electric energy industry responded?
Well electricity and natural gas have always been competitors through technology. Natural gas heating applications have been constantly targeted by electric heating. Electric motors have been challenged by natural gas driven engines. Large electric driven air conditioning systems have competed with natural gas driven absorption technology.
So given that natural gas resources (from fracking) has allowed natural gas to truly challenge gasoline as a transportation fuel I am not surprised that an electric option will not be far behind!
Let’s keep competing.
Huffington Post, Tech “EV’s Holy Grail: 500 Miles on a Single Charge”
So what exactly is Natural Gas Storage?
Natural gas as you know or may not know is a colorless, odorless gas that can be stored in a number of different ways for an indefinite period of time. Natural gas that is transported through the pipelines is not always needed right away, and is put into storage for later use. Most natural gas in the United States is stored in depleted natural gas or oil fields underground. These underground storage fields take advantage of existing wells, gathering systems and pipeline connections. Natural Aquifers, Salt caverns and abandoned mines are also used to store natural gas.
Types of Underground Natural Gas Storage Facilities
The demand for natural gas is normally higher in the winter than in the summer. This is mostly due to the fact that most homes and organizations use natural gas for heating in the winter. The stored natural gas delivered during the summer months normally at a lower price again due to supply and demand, is ready and available for use during the increased demand of the winter months. The natural gas in storage can also be used as insurance against natural disasters or other unforeseen accidents which may affect the production or delivery of natural gas.
Before 1992 natural gas was a regulated commodity and storage was required for the operational requirements of the pipelines to meet the needs of the utilities. In 1992 the Federal Regulatory Commission introduced Order 636 which opened up the natural gas market to deregulation. What Order 636 did was make storage available to industry participants for commercial reason. For example Realgy Energy Services Storage program which stores gas when prices are low, and withdraws it when prices are high.
Underground Natural Gas Storage Facilities in the Lower 48 States
Most utilities and industry participants pocket the savings from storing gas at a lower rate and sell it at an increased rate for a profit. What makes Realgy Energy Services Storage program unique is that the savings from stored gas is always passed along to our customers.
Realgy Energy Services offers the Summer Storage Program to our customers to help offset the cost of winter natural gas usage. Under the program customers put away 20% of their historic usage into storage at the lower summer rates to be used in the winter when the price of natural gas normally increases.
If you would like more information on The Realgy Energy Services Storage Program you can contact one of our Energy Brokers at (877) 300-6747 or check out our website www.realgyenergyservices.com
Sources:
U.S Energy Information Administration The Basics of Underground Natural Gas Storage
NaturalGas.Org Storage of Natural Gas
Natural Gas Storage Season is here
Realgy Energy Services Natural Gas Storage Program is just one more way we help our customers save money on their energy usage.
Natural Gas Storage is the service of purchasing a percentage of your annual gas usage during the summer months and storing it. This stored gas is then delivered to you during the winter months. That is why we call it “winter gas at summer prices.”
Natural Gas Storage injections begin in April and run through October. As part of our customer Benefits Realgy Energy Services purchases approximately 20% of your annual Natural Gas usage during the months of April, May, June, July, August, September and October. For each of these seven months we will buy approximately 2.85% more gas than you use, at the low spring and summer variable rates.
Then during the 5 winter months of November, December, January, February, and March, this stored Natural Gas will be withdrawn and delivered to you. Since you have already purchased this Natural Gas, you will see an even greater savings during the winter months.
Realgy offers this storage program whenever we can. If your Utility allows Realgy to offer a storage program, it will be listed in our Service Plan table on our website www.realgyenergyservices.com, or you can contact customer service at 877-300-6747.
How to protect your natural gas and electric meter this winter
Outdoor natural gas and electric meters are designed to withstand winter weather conditions, but heavy or hard-packed snow and ice can present a safety hazard.
Accumulated snow can place unnecessary stress and strain on your gas meter piping which can increase the chance of a gas leak.
Blocked regulator vents, which allow your system to “breath”, can affect operation and interrupt service.
To avoid problems, follow some basic meter protection tips:
Meter Protection Tips:
Keep you meter clear of snow and ice.
Do not shovel snow up against your meter.
Take care in using a snow blower or plow near your meter.
NEVER kick or hit a meter to break away built-up snow or ice.
Remove icicles from overhangs.
Protect your meter from dripping water which could freeze.
If you find your meter or pressure regulator covered in frozen ice or snow, do not attempt to remove the ice or use de-icer, contact your Utility.
It is always a good idea to keep a clear path to your meter to avoid estimated meter readings. If you can’t get to your meter, the individual who reads your meter will not be able to either.
These helpful tips provided by Realgy Energy Services