Energy News

Weekly trends and insights on the Natural Gas and Electricity Markets
Electricity Market NYISO and PJM saw almost no change week over week. ISO- NE also continues to be relatively steady, no big movements around the forward price of energy. However, forward quotes still may come in higher than expected in this region due to capacity, ancillaries, RECS and other factors. These are not going away regardless of low wholesale energy prices! The day-ahead market has remained somewhat volatile, based on the below-normal weather in much of the Northeast especially. Natural Gas Markets The price of the 12-month strip averaging May...
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Electricity Market While most of the ISO’s have remained quiet, ERCOT is back on the rise. On peak pricing, especially in July and August is anticipated to be very high, running up the 12-month forward average. Also note that some ISO-NE zones will experience an increase in their capacity market starting in June. Any clients currently on market variable programs should be advised of this change. Spot pricing in New England has bounced up and down with the changes in weather. However, the volatility has not been as severe as...
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Electricity Market NEISO, PJM, and NYISO remained flat overall since last week’s report. ERCOT experienced a slight bump up after the drop-off. The Department of Energy released a study on future coal and nuclear generation retirements, which examined NEISO, NYISO, PJM, and ERCOT during historical high demand periods, and said that additional coal and nuclear retirements could result in future grid instability. If coal and nuclear generators are kept online, there could be less demand for natural gas for electricity generation. The Day-Ahead market remained quiet, as temperatures have come...
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Electricity Market The wholesale electric market did not see much movement from last week’s report. NYISO slightly decreased while NEISO and PJM remained steady. ERCOT saw a drop-off, as additional capacity projects are planned to come in service between 2018 and 2022.   Spot market pricing on the day-ahead shot up in PJM, while NEISO is returning to normal post-storm. Natural Gas Markets The natural gas market 2018 forward curve is trending down across the board. With strong production matching higher demand, the market is content to hover in its...
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Electricity Market The electric market has shown some volatility, but it is still a good time to hedge. ISO-NE remains flat, while NYISO and PJM moved up slightly from last week. These markets haven’t seen a spike since the cold weather in January. ERCOT, however, continues to climb as a result over concern from the tightening of reserve margins for the coming summer.   The Day-Ahead market continues to trade in a fairly tight range. The market will need an indication of warmer weather before any severe drops occur. Natural...
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Electricity Market Wholesale electric prices over the report week were overwhelmingly flat, with the exception of ERCOT which again moved higher. In addition to the coal plant closure announcements and nervousness about load reliability during the summer, the economy in Texas has been heated. Energy prices in this market are unrestrained which could cause some anxiety moving forward. As the long run of above average weather ended, more normal conditions caused a slight uptick on the day-ahead market for ISO-NE. The storm at the beginning of the report week did...
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When evaluating natural gas contracts, one component that you may consider is the suppliers offering of swing options.  Swing refers to your business being able to go above or below the amount to be supplied, while still being billed or credited for any used/unused volume at your fixed or index price. Sometimes also referred to as “contract quantity”, the variance in swing ranges from 0-100%, while most suppliers will give you the option to have 0% swing, 10% swing or 100% swing. Typically, if you choose a 100% swing option,...
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The price consumers pay for electric supply is made up of a series of components. Although the price of wholesale energy is often the focus, it is actually only a portion (recently 50% or less) of the overall cost. One element that has recently increased significantly, especially in the New England market, is capacity. Capacity prices are set through periodic auctions where New England power plant owners bid to assure that there will be enough generating capacity on the hottest and coldest days. The bidders compete with each other and...
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As your chosen energy consultant, we would like to provide a reminder that Direct Energy, your current supplier, will be conducting a final consolidation of their electricity billing systems. This transition will mean some changes for your accounts as a customer. However, please note that ONLY customers who are currently being dual-billed will be effected (meaning one bill from your utility and a separate bill from Direct Energy your supplier). You should also be receiving correspondence from Direct Energy regarding these changes; however we wanted to make sure you were informed in...
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Electric and natural gas suppliers are constantly changing and evolving their business. Power Management is here to assist with these sometimes complicated transitions and work on the customers end to straighten out the details. We wanted to remind you of some changes that a few suppliers will be implementing that may have an effect on your billing over the next couple of months. In February/March 2017, Direct Energy will be conducting a final consolidation of their electricity billing systems–and the legal entities associated with them.  You may remember hearing about this when...
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Weather and natural gas storage inventories are two variables that are often discussed when analyzing current natural gas prices and where they are anticipated to go. Earlier this year, working natural gas inventories ended the winter heating season at 2,478 Bcf. This exceeded the previous record high of 2,473 Bcf set in March 2012, which again followed a warm winter. Due to record warmth during the winter season and continued high levels of domestic natural gas production, inventory withdrawals during the traditional heating season (November through March) were relatively limited. Analysts...
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For Immediate Release: ROCHESTER, NY – RRHA Joint Ventures Corporation has entered into a new agreement with Power Management Company. After extensive consideration, RRHA/JVC chose Power Management to represent the future energy needs of its members. Power Management will offer member institutions access to exclusive member advantages through this new program. RRHA/JVC and Power Management’s shared visions for this partnership are to enhance member options by providing them with competitive pricing, ongoing cost management and comprehensive energy strategies. This new collaboration draws on the distinct strengths of each company: PMC’s extensive knowledge of...
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Later this year, America will have a new President. Who that will be is still to be determined and that lack of clarity isn’t good for the markets. Presidents who are in the final year of a second term are also often less predictable than they are in previous years. Markets don’t react as much in the final year of a president’s first term as incumbents are many times reelected.  As 2017 begins, investors won’t have to guess who will be in power, however, a president’s first year in office...
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For Immediate Release: ROCHESTER, NY- June 7, 2016– On Sunday, Rochester native Dominic Bozzelli secured his first Web.com Tour victory at the Corales Puntacana Resort and Club Championship. Bozzelli came in 24-under-par at the event which was held May 30 – June 5. This was a four-stroke victory over Roberto Diaz, Sam Ryder and Blake Adams. The win brings his rank to #6 on The 25 list. The top 25 money winners at the end of the season are automatically awarded full playing privileges on the PGA Tour in 2017....
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There is no question that New England’s energy infrastructure is clearly constrained, lacking resources that are both reliable and cost competitive. The region has limited local natural resources and energy must be transported long distances. With the increasing amount of variable generation such as wind and solar coming online, as well as the retirement of older coal and oil-fired units, the importance of natural gas as a reliability factor will likely continue to rise. These fast-responding units are a necessity in order to balance the other somewhat unreliable systems. This...
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Over the past few months, the natural gas market has seen high production levels and storage at a record level. Couple this with the non-existent winter thus far and we are currently in a period of natural gas and electric prices as low as we’ve seen over the past 10-15 years. With a strong El Nino predicted, a milder winter is anticipated to continue. However, as we have seen in years past, Mother Nature can surprise us at any time! When evaluating purchasing strategies for our clients, one of the...
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Power Management was honored to be recognized last Wednesday as one of the Rochester Top 100 companies.  The Rochester Business Alliance and KPMG, LLP hosted the 29th Annual event at the Joseph A. Floreano Rochester Riverside Convention Center.  Ranking 44th on the list, Power Management was proud to be among other fellow recipients on the Rochester Top 100 list which ranks the fastest-growing privately held companies in the nine-county upstate New York region. The awards intend to recognize both large and small privately owned companies that have and will continue to have...
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Earlier this week, the American Council for an Energy-Efficient Economy (ACEEE) released its ninth edition of the State Energy Efficiency Scorecard. This comprehensive analysis is an annual benchmark which outlines the efforts to support energy efficiency of all 50 U.S. states and the District of Columbia. The report ranks states on their policy and program initiatives that improve energy efficiency in homes, businesses, industries, and transportation systems. The scorecard evaluates states based on six areas including: utility and public benefits, transportation, building energy codes and compliance, combined heat and power...
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Rochester Gas and Electric (RG&E) recently implemented a new charge for utility customers in their service area. Effective September 1, 2015, this charge called the Reliability Support Services Surcharge (RSSS) will impact the delivery portion of a customer’s electric bill. NYSEG which serves many customers throughout New York State also issued a similar charge back in the spring of 2013. The need for this new charge stems from the occurrence of a number of power generation sources which have, or are expected to, come offline throughout the Northeast. RG&E has continued to...
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There is a regulatory change currently underway for those in the PJM region that will affect the capacity market beginning in June 2016. This market reform is called Capacity Performance, and intended to strengthen reliability of the region’s power supply. Capacity markets are designed to ensure enough supply is available to meet demand during peak summer hours and severe winter weather. The new program will result in higher capacity prices; however customers will benefit from fewer expected outages and price spikes. In PJM, capacity prices are established through an auction three...
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Over the next few days there is a good chance that we may set the peak energy demand for the year due to the expectation of high temperatures.  If possible, we are recommending that customers with interval meters reduce their electricity use, especially during the hours of 3 p.m. to 6 p.m. on Wednesday and Thursday in NYISO,  ISO-NE, and PJM. Peak usage is set during the highest demand hour of the year in NY and NE, and the average of the five highest days in PJM. This determines the...
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Solar, wind, and geothermal are all sources of renewable energy that are frequently talked about. But here’s something you might not hear about all the time- wave power. In addition to surfers and tourists being drawn to the waves in Hawaii, waves are now being tested as a source of electricity through a new Hawaii Wave Power Project. As 70% of the earth’s surface is covered in water, researchers are assessing this relatively untapped source of clean, renewable energy that the oceans could offer. Wave length, height, speed, and water density...
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