It’s Your Money
September 23, 2019
When I first meet people
They always ask…
So… what do you do…
I respond…
We save companies money…
That normally gets a positive response…
People like to save money…
Now….
Do you have time for a quickie quiz…
How many of you have signed a contract…
Thought you got a good deal
Possibly a great deal and…
Never looked at the paperwork again
Can I see a show of hands…
You…
Yea…. you over there
Is your hand up or are you scratching your head…
It looks like you wanted to put your hand up
Come on…
Let’s be honest
We all have done it…
I believe that all of us have good intentions…
But let’s face it we just get busy
No matter how you planned your day
Something happens and you are once again
Putting out fires
The first thing we do with any potential client
Is validate what they are currently paying
Are you paying the exact rate you signed for…
Believe it or not…
This is not always the case
I have people tell me….
Yea… we signed a contract and I was told
We are paying well below market prices
That is always great to hear
But let’s see if that is their reality…
Do you mind if I see your contract…
And could we also get a copy of your latest bill…
I can’t tell you how many times
We find that people are being charged
The wrong rate
And most of the time it is for more than
What you signed for
We always direct them to call the provider
And clarify…
Why are we paying this higher rate…
Our contract states we should be paying xxxx amount
Guess what the response normally is…
Oh, we’re sorry
That was billed improperly
Let us correct that…
We can give you a credit
Or send you a refund
How nice of them….
If they were under charging you
I bet they would contact you and say
We have a problem
However, if they are over charging you
You don’t hear from them
This is your money…
Don’t be afraid to ask for it…
HBS clients have received thousands of dollars in refunds
Always be aware of what you are paying…
And if you are not sure…
Give us a call
HBS leaves no stone unturned in our search for savings
We find ways to save you money
Gas It Up
June 30, 2016
The past 3 months
Natural gas prices have been on the rise
After establishing a new floor
With the Nymex dropping under $2.00 a dekatherm
It started an accent
And is now heading towards $3.00
That would be a 50% increase
What caused this sudden rise….
Some say…..
Supply / Demand
Others say greed
With the market choking on gas
And gas prices being low
They started shutting down wells
That can certainly drive prices up
Now throw the weather into the mix
Did we have a spring…
Maybe we will have a hot summer
The market is in flux
Should the long range forecast see a hot summer
Prices will continue to rise
If cooler temperatures prevail
You will start seeing prices back off
Should that be the case…
We will see a window of opportunity
For gas and electric prices will drop and
Become even more competitive
In the energy business
Timing is everything
We’ll keep you posted
Live Update
June 11, 2015
Good Afternoon…..
This is George Hutchinson….
Bringing you a live energy update
From our HBS studios
Located in a remote area of…
New Jersey
This Thursday afternoon
June 11th
The year 2015
Before we get into the current market conditions
Let’s take a minute to look
At some of the factors
That has led up to this point
It has been a crazy couple of months
Many people say…..
The energy market
Has developed a mind of it’s own
After starting out with a mild winter
We got hit with colder than normal temperatures
During the months of
February and March
This helped to push energy prices up
The gas nymex
Came close to hitting $3.00
It also had an adverse effect on Basis pricing
January 2016 basis
Was running over $7.00 a dekatherm
As cooler than expected spring temperatures hit
In April and May
We started seeing prices
Drop
Making the market
More attractive
You could hear the chatter starting ……
Maybe the summer was not going to be
That hot after all
Prices continued to drop
The door was opening
Was the bottom going to fall out
Record storage levels
Were being recorded
Then….
Sometime during
The end of last week…..
The weather gods
Started talking about
Temperatures going into the
High 80s…..
Possibly the low 90s this week
Immediately
The market corrected itself
Ohhhhh
Maybe it is going to get hot after all
Prices started to rise
Nymex jumps 10 points
Next day
Nymex jumps another 10 points
The market is up again
As I bring you this update
As I often say….
Timing is everything
But the old adage
Still rings true…..
What a difference a day makes
Stay tuned for further updates
Where’s the Floor
February 9, 2015
Natural gas is a commodity
That is traded on the nymex
When people say…
Natural gas is up 5 cents
Or
Natural gas is down 5 cents
They are talking about
The price of natural gas
Out of the ground
Which is traded
On the nymex…
If you flash back
5 to 6 years ago
You will probably remember
Natural gas prices were
Thru the roof
Trading around
$13 – $15 a dekatherm
Slowly
Over time
The market began to drop
It hit the floor
In May 2012
When the nymex
Hit $2 a decathem
(Nobody knows where the floor is
Until you pass it)
Since May 2012
We have been on a roller coaster
The nymex climbed up
To over $5.50
In Feb 2014
Then….
It began a slow descent
As of today
The nymex is
Trading at $2.59 a dekatherm
The point I am trying to make is….
The nymex is once again
Hovering
Just above the floor
It hit in May 2012
This is good news for
Those buying
Natural Gas and Electric
In the deregulated market
With the winter winding down
And with a glut of gas
In reserves
Prices are very competitive
This is a great time
To save
$$$$Money$$$$
Will gas go below the $2 a dekatherm
I wish I had a crystal ball
In a market
Where timing is everything…..
Now is a good time to be
Locking in future savings
As reported in Wall Street Journal
By
Timothy Puko
July 28, 2014 3:09 p.m. ET
NEW YORK—Natural-gas prices set a new eight-month low for the fourth time in six sessions, breaking an early-day run Monday as traders stayed focused on low prospects for demand.
Prices for the front-month August contract settled down 3.4 cents, or 0.9%, to $3.747 a million British thermal units on the New York Mercantile Exchange. August options expired Monday and the contract expires Tuesday. The more actively traded September contract settled down 2.2 cents, or 0.6%, to $3.765/mmBtu.
The day largely focused on technical trading as buyers and sellers kept moving against the momentum of the market, analysts said. After prices quickly hit an intraday high of $3.85/mmBtu, traders began to sell, likely focused on how cool weather is likely to limit demand in the weeks to come, said Aaron Calder, senior market analyst at energy-consulting firm Gelber & Associates in Houston.
The unseasonably cool summer has allowed consumers to use less air conditioning and the gas-fired electricity that fuels it. Producers put a record string of surpluses into storage, and gas prices have fallen about 20% since mid-June.
“If the weather stays mild and we don’t have any power demand, as it has been, then I don’t think we’ve hit a bottom,” Mr. Calder said.
Forecasts still show mild weather, including temperatures as much as eight degrees Fahrenheit below normal, lingering over the center of the country into the second week of August. Weather forecasts made only small changes over the weekend, with division over whether temperatures would be slightly warmer or cooler than previously expected.
The New Normal
April 29, 2013
Since May of 2012
When the natural gas
Nymex (gas out of the ground)
Hit the floor at just under $2.04 a dth
We have seen the nymex
More than double!!!!!
Today the nymex is at $4.16 a dth
All this talk about……
Overflowing gas supplies
Storage levels being at a
5 year high
Has not dampened the market
I have had many conversations
With people in the energy industry
There is an….
Across the board agreement
That there is little substantiation
For this increase in pricing
Will prices go back down?
Hard to say…..
I do not see it dropping
To where prices were last May
Is having over a $4.00 nymex
The new normal
Stay tuned
For more insight contact george@hbsadvantage.com or call 856-857-1230
Visit us on the web http://www.hutchinsonbusinesssolutions.com
Turning Tables
March 21, 2013
Several weeks ago
I spoke about the projected
Increase of gasoline prices
Over the upcoming months
Experts were predicting the price
Of gasoline could reach…
The dreaded $4.00 a gallon mark
Before the summer hit
At the same time….
We were seeing
Natural gas prices
Continuing to fall….
The thought was….
That the Nymex (gas out of the ground)
May be heading…..
Back under $3.00 a decatherm
Well……..
The experts were wrong
The price of gasoline in NJ
Has been dropping
Over the past few weeks
Today I saw it listed for
$3.379 a gallon
(Don’t forget that last 9
You are not paying $3.38 a gallon)
Gasoline prices are….
Down about 25 cents
Do you think we can head into the low 3s?
Possibly sneak under $3.00 a gallon
With summer insight…
That could be a stretch…
Think of all those cars
Heading for the shore
Stay tuned…….
Natural gas prices
On the other hand…
Have jumped
Over the past 3 weeks
Near the end of February
The Nymex was around
$3.15 a decatherm
The talk was….
That the Nymex
Could be heading under $3.00 a decatherm
Surprise….Surprise….Surprise
With little or no warning
The nymex took off running
As of this writing
It is $3.965 a decatherm
Poised to break the $4.00 mark?
That is a 25% jump…
In less than a month
There is little or no support
To this Meteoric rise
Yeah, we had some cold weather
After all, it is winter
December and January
Were fairly mild
It did get cold in
February and March but…
The overall winter
Has not been that cold
Spring started yesterday
That tells me the weather will be….
Getting warmer
With warmer weather
The demand will drop
They are still dealing with
Abundant supplies
The nymex should settle down
And start dropping again
Don’t change the channel
We will keep you updated
With any breaking news
For more information contact us
george@hbsadvantage.com
Smart Solutions for Smart Business
Sticker Shock
March 7, 2013
Just when everything
Seems to be going along
Quite well
There always seems to be something
That snaps at you…
That brings you back to reality
In this case
I am speaking
About electric supply prices
Over the past year
Electric prices have been at…
Their lowest level
In the past 4 to 5 years
There were times I would have to
Double check with our providers
To verify the prices were correct
That is how low they were
Then came January 2013….
PSEG is doing an upgrade of their
Network Integration Transmission System
To the grid
This has proved to be very costly
And the Federal Energy Regulation Commission
Has agreed to allow this cost
To be a pass thru cost
To anyone buying electric in PSEG territory
It is known as the NITS
And
This has added anywhere from
3 to 5 mils onto the supply cost
3 mils ( 3/10ths of a penny) or
5 mils ( a ½ a penny)
Doesn’t sound like much
But multiply it by your annual Kwh
Add it adds up very quickly
On top of this…
As the demand for electricity increases
The companies generating the electricity
Are asked to generate enough electricity
To ensure there is enough electricity
In reserve…
To maintain
Reliability on the power grid
The generating companies said
No problem
But it is going to cost you more
As a result…
To maintain the capacity needed
For reliability
The capacity payments jumped 65%
From the prior year
This cost also
Has been tacked onto
The electric supply cost
We have seen this add an additional
5 mils….
Even up to a penny
To the supply cost
These additional costs
Effects all commercial and industrial users
Whether they buy electric from the local providers
PSEG or AC Electric
Or
They are buying electric from a
3rd Party deregulated provider
The deregulated electric market
Is still offering a better opportunity
For savings
Over the Local provider supply cost
But there is sticker shock
We find the clients saying….
Yeah……
But our cost has been……
For the last year or two
I guess it was too good to be true
Don’t let the events described scare you
We keep using more electricity
Thus the demand for electricity increases
There are still real opportunities
For savings
It is just that the bar has risen for everyone
We are finding the best savings opportunities
In the longer term electric renewals
This softens the 65% capacity increase
For capacity cost return
To their prior level of cost
As of Jun 2014
To learn more….
Feel free to contact us
Yearly Electricity Auction Yields Mixed Results for NJ Consumers
February 8, 2013
As reported in NJ SpotLight By Tom Johnson, February 8, 2013 in Energy & Environment
The state yesterday announced the results of its annual electricity auction, a process used partly to determine utility bill prices, and the outcome was decidedly mixed in a market some thought would deliver more savings to consumers.
At a time when natural-gas prices are near historic lows, the auction yielded savings for residential and small commercial customers for three of New Jersey’s four electric utilities, with prices dropping by 3 percent to as much as 5.4 percent, effective June 1. It is the fourth year prices have dropped for residents and small businesses.
That’s the good news.
But for larger commercial and industrial customers, prices basically doubled for the electricity they will need, according to a consultant for the state Board of Utilities, which conducted the auction over the past few days. For both residents and larger customers, any increases apply only to the portion of the bill covering the cost of generating electricity, which accounts for about two-thirds of the cost paid by ratepayers.
The contrast in auction results reflects changes in the energy market since the state deregulated its electric monopolies in 1999, and explains partly why even with the steep drop in the fuel that sets the price for electricity, consumers in New Jersey still pay some of the highest energy bills in the nation.
Here’s why:
The BPU no longer controls the price of producing the electricity consumers get from suppliers; the federal government decides how much utilities will earn on transmission projects they undertake; and the PJM Interconnection, the regional operator of the nation’s largest power grid, regulates how much suppliers will earn for making sure the lights don’t go out. On top of all that, the state’s efforts to promote solar energy also are boosting costs, as the BPU conceded in a press release announcing the results of the auction.
The state blamed the surprising large increase for industrial customers on a rise in capacity payments to power suppliers, which ensure there is enough electricity in reserve to maintain reliability on the power grid. Those capacity payments jumped by 65 percent from the prior year, according to the BPU.
That was of little comfort to business lobbyists.
“That’s an awful large increase,’’ said Hal Bozarth, executive director of the Chemistry Industry Council of New Jersey. “It’s a clear signal to me the auction system is broken in many places.’’
The vast majority of industrial and commercial customers, however, have contracts with so-called third-party suppliers, which are not affected by the jump in prices in the most recent auction, BPU officials noted.
The doubling of prices to industrial customers only applies to the relatively few establishments that have not switched from their incumbent utility.
“It’s disturbing,’’ said Stefanie Brand, director of the New Jersey Division of Rate Counsel. “It’s definitely going to have an impact on them.’’
Other factors contributed to the mixed results in the most recent auction.
For Public Service Electric & Gas, the state’s largest utility with more than 2 million customers, more than the three other utilities combined—prices for residential and small-business customers were essentially flat.
Its customers will see their monthly bills rise by 6 cents a month, an increase largely attributed to the billions of dollars the company is investing in new transmission projects ordered by the regional grid operator and the Federal Energy Regulatory Commission. Those projects could lower electric bills in the long run by easing congestion on the power grid, which spikes electricity costs, and bringing more power into the capacity into the state, according to PSE&G spokeswoman Karen Johnson.
The state, however, has contested many of the incentives handed out by FERC, which has rewarded PSE&G with much higher rates of return on a handful of transmission projects, much more than the utility receives for maintaining its distribution lines, which deliver power from substations to homes and businesses.
“We’re not saying we don’t need transmission,’’ Brand said. “But they can earn a fair return on them without earning excessive returns.’’
The price of electricity per kilowatt hour for PSE&G customers in this year’s auction was 9.218 cents per kilowatt hour, almost a penny more than the prior year, Brand said. “Some of these numbers are moving in the wrong direction,’’ she said.
The state is also trying to address the rising costs of capacity payments by giving subsidies to new power-plant developers, a controversial strategy under attack from both incumbent power suppliers and the PJM.
Nonetheless, three new power plants, one without any state subsidies, are due to begin supplying power in 2015 — too late, however, to drive down costs for this year and next.
Citing the increase in capacity costs, Brand said the auction results show “graphically when efforts have been made to increase investment in new generation and why residents will benefit from it.’’
BPU President Bob Hanna, in a conference call with reporters to discuss the auction results, said it is very hard to predict what is going to happen with natural-gas prices, the main driver in setting electricity prices.
“For now, I see a period of stability,’’ he said.
And for now, some consumers will see a drop in bills. According to the BPU, customers of Atlantic City Electric will see their monthly bills drop by 5.4 percent, or $6.42 cents a month; for Jersey Central Power & Light customers, there will be a decline of 3 percent, or $2.91 per month; and Rockland Electric customers will see their bills dip 5.3 percent, or $6.74 monthly.
For more information call 856-857-1230 or email george@hbsadvantage.com
Hutchinson Business Solutions………Smart Solutions for Smart Business
Chance of Snow
February 6, 2013
Seems like this is the one phrase
We have been hearing a lot
Lately
Here it is the beginning of February
And we have had no…
Major accumulations
I love hearing the
Projected winter snowcast
They give back in October
By our calculations
We see several cold fronts
Moving thru
Over the next couple of months
With these cold fronts…..
We see several major storms
Being caused by the El Nino
Now sitting
In the Pacific Waters
Total projected accumulation
During the next couple of months
Will be….
Drumroll please…
From 25 to 35 inches
A few years ago
We almost hit the
25 inch mark…
The week after Thanksgiving
In fact we had 3 major storms…
Bringing over 50 inches of snow
By New Years
I wonder what they said that year?
This year
Ho Hum…
Where is the snow?
I feel sorry for all the people
Who ran out and bought
Brand new snow gear
Seems to be just….
Taking up space
Remember when we used
To go out
And buy snow tires?
Whatever happened…
To snow tires….
Or did you used to put….
Chains on your tires?
Meanwhile…
It seems the cold
Has finally
Settled in
The deregulated energy market
Has remained…
Fairly stable
There are still
Great opportunities
For savings
In the natural gas
And electric markets
If you have been hesitant
To look at these deregulated opportunities
This is a good time to….
Dip your toe in the water
You will like what you see
I wish I could say the same
For the gasoline market
The price of gasoline
Has jumped over 30 cents…
Just in the last few weeks
People are no longer saying…
Fill it up
With regular
It’s back to….
Can I have $20 of regular
There is speculation
That gas prices may even
Make the push
To the dreaded…
$4.00 per gallon mark
Over the next month or so
That will make for a
Long summer….
Driving
Back and forth
To the shore
How many times
Will we have to stop for gas
If we keep getting…
$20 refills
Supply and demand
They have the supply
And we demand…
Lower prices
Will we ever see gas….
Under $3.00 again
Here’s hoping
We are doing our best
In the deregulated energy market
Saving our clients’
Thousands of $$$$$
Does anybody
Know someone…
In the refinery business…
We could all use some
Savings on the road
For more insight contact george@hbsadvantage.com
Smart Solutions for Smart Business
Hutchinson Business Solutions 