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
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
Natural Gas Prices Drop
December 12, 2014
It looks like the natural gas market
Has shaken off the fears
Of having a cold winter
Once again this year
After beating the drums
For 11 months
Driving up market prices
Now
That winter is here
The market sees no fear
And has been in free fall
Not to say
That things could change
Remember we are dealing
With the fickle energy market
We have heard many times
Timing is everything
Well you can’t say
I didn’t tell you
If you are currently
With the local provider
Or
You are floating with a 3rd party provider
Now’s the time to lock in on savings
Market prices are well below
What you would be paying
For those businesses
Who use gas
To heat their buildings
Statistics show
You use about 60% to 70%
Of your annual natural gas usage
Between the months
November and March
To heat your building
One cold snap
Can push prices thru the roof
It is smart to protect yourselves
During these high usage months
By locking into a competitive
Fixed rate contract
Give us a call
Or shoot us an email
We are here
To help you save money
Natural Gas Soars On Fears of a Polar Redux
November 7, 2014
As reported in Wall Street Journal
By
Tim Puko
A repeat of last year’s snowy, Arctic-cold winter is looking a little more likely today. Natural gas traders, still scarred by the memory, are bunkering in.
Buyers have been rushing into the gas market for a week on fears of a sequel to last winter’s Polar Vortex, which walloped the eastern half of the U.S. with brutally cold temperatures from the deep south up to New England. Many spent months dismissing that possibility as simple panic, but now meteorologists are getting more pessimistic.
Both Commodity Weather Group and WeatherBELL Analytics LLC released long-term forecasts this week showing a notably higher risk for a cold December. That was supposed to be relatively mild month this winter, balancing out a cold January and February. Now the whole winter is shaping up to be “pretty nasty,” WeatherBELL said.
That has propelled natural gas to a six-session rally. It’s rebounded nearly 18% since it hit its 2014 low last week. Gains of nearly 3% Tuesday are pushing it near a three-month high.
And traders are all wondering if the winter of 2015 will bring a repeat of 2014.
“I think it’s a reasonable risk,” said Matt Rogers president and meteorologist at Commodity Weather Group in Bethesda, Md. An early season burst of cold starting next week is already “really spooking a lot of people.”
More than half of all U.S. homes use natural gas as their heating fuel, making the natural gas market especially vulnerable to weather. Tepid demand had capped the market for four months and had bankers and investors fearing a glut by the spring. The new forecasts have flipped that script, at least temporarily.
Timothy J. Collins, director at Fairfield Advisors LLC in Madison, N.J., has had to get out of spread bets that depended on falling prices in January, he said. He is now trying to buy into positions that would benefit from rising prices that month, but he still thinks that record production will help balance out the fear of a Polar Vortex repeat, he said.
“I think people are overly sensitive to it,” said Mr. Collins, whose fund manages $35 million. “You know how they say the military is always trying to fight the last war? Well, we keep trading the last position.”
The rally could produce bargains for stock investors, said Jonathan Waghorn, co-portfolio manager at Guinness Atkinson Asset Management Inc. in London. Its $84-million fund holds Chesapeake Energy Corp., QEP Resources Inc. and Ultra Petroleum Corp, among other oil and gas producers that could benefit from rising gas prices balancing out free-falling oil prices.
“Gas is strong, yet the energy equities names are all getting hit,” Mr. Waghorn said. “If you believe the gas story, today’s giving you a good opportunity to pick up some energy names getting smashed by weak oil.”
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
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
Annual Electric Auction Helps Determine Rates for NJ Utilities
January 31, 2013
Low prices for natural gas used to fuel power plants may help keep down rates.
By Tom Johnson, January 31, 2013 in Energy & Environment as reported in NJ Spotlight
For the past four years, consumers and many businesses in New Jersey have enjoyed a rare occurrence — a drop in the price of the electricity delivered to their homes from power plants around the region.
Might the trend continue? More will be known by the end of next week when the state Board of Public Utilities holds its annual online auction to purchase most of the electricity needed to power millions of New Jersey homes and businesses.
The results of the annual auction play a big role in determining whether electricity prices fall or rise each June in a state saddled with some of the highest energy costs in the nation.
But in the increasingly complex energy market, the auction is not the only factor: Transmission prices continue to rise and the state has increased the amount of electricity that power suppliers are required to buy from solar-energy systems, which costs more than electricity produced from more conventional power sources. Those and other factors can wipe out any savings achieved in the auction.
The auction typically involves the expenditure of more than $7 billion in ratepayer funds, although that amount may drop given the number of customers who have switched in the last year.
For the most part, state officials and industry executives were reluctant to predict the outcome of this year’s auction, but the general consensus was there should not be a drastic change in consumer prices, given the continued relatively low cost of natural gas.
‘’I don’t think there will be any major swings,’’ said Jay Kooper, the New Jersey chairman of the Retail Energy Suppliers Association, a group representing power suppliers who try to offer customers cheaper electricity than that supplied by the state’s four electric utilities.
With the steep drop in natural-gas prices, Kooper’s members have been much more successful in luring customers away from the state’s utilities, which buy the power they need to supply their customers in bulk in the annual auction held by the BPU. The cost of generating that electricity generally amounts to about two-thirds of a customer’s bill, with most of the rest of the cost tied to the expense of delivering the power over a utility’s transmission and distribution lines.
Natural-gas prices are still historically low, but they have bumped up a bit since last year, according to Tancred Lidderdale, a senior analyst at the Energy Information Administration, an arm of the U.S. Energy Department.
“Natural gas prices are still low, but they are not as low as last year,’’ Lidderdale said, noting that the price of the fuel, which is largely used to power generating stations in the region, was about $2.40 last January in one sector; prices were running at about $3.29 in future contracts in the same sector this month.
The price differential should not have a big impact on the New Jersey auction because of the way state regulators have structured it. Last year, prices for electricity purchased from the power suppliers fell from 1.1 percent to as much as 6.4 percent, depending upon the utility supplying the electricity.
Critics, however, said the price drops could have been steeper if the state’s utilities were not locked into the present system of buying electricity. Under that system, the utilities buy one-third of the power they need for customers each February. By doing so, they avoid the possibility of their customers be hit with huge price spikes when natural-gas costs rise rapidly, as happened during Hurricane Katrina.
The downside is that when natural-gas prices fall, customers do not gain the savings very quickly from their utilities, which has prompted more and more customers to shop around for cheaper energy rates. By the end of December, about 15 percent of more than 3 million residential customers had switched electricity suppliers, way up from the 5 percent who had switched in February.
New Jersey Division of Rate Counsel Director Stefanie Brand, who has argued for changes in the current auction structure, said the lower natural-gas prices may offset other factors driving up costs for consumers.
“Hopefully, it will be good news for consumers,’’ Brand said in a telephone interview. “I would love to see prices go down, but I can’t say I know what’s going to happen.’’
Hal Bozarth, director of the Chemistry Industry Council of New Jersey and a frequent critic of the state’s energy policies, said he would expect prices to go down, given the low natural-gas prices. “I’d be sadly disappointed to see prices go higher,’’ he said. “The rates are so high they are a disincentive for economic development.’’
In New Jersey, energy costs for the industrial sector usually rate as sixth- or seventh-highest in the country, about 60 percent higher than the national average, according to Bozarth.
Kooper, who said the state’s system of buying power needs some structural changes, remained hopeful. “I think there will be opportunities to shop for electricity,’’ he said.
The Rumbling Started………
January 7, 2013
Back in September
Right after Labor Day
Future forecast show
We are in for……
A cold winter
Thus began the long trudge….
Natural gas prices
Started inching up
In October
The drumbeats started
Beating louder
Forecasts are calling
For a cold winter
Natural gas prices
Inched up
A bit higher
All this was happening
As Natural gas storage levels
Remain at….
An all-time high
Future supplies are poised
To make the US
The world’s largest
Natural gas supplier
New finds and
Refined extraction methods show
We have over 100 years
Of natural gas reserves
November starts….
The drums keep beating
Forecast show that it is
Going to be
A cold winter
Prices inch up a bit higher
All the while
We have been experiencing
Higher than normal temperatures
Here it is January 2013
We have had some cold weather
But no long term stretches
Of cold weather
They are already forecasting
That beginning next week…..
A warm front will be coming in
And hanging for a couple of weeks
All this has created a
Natural gas market
Phenomena
The index
(The base cost of natural gas
To all providers)
Started to drop
So much for the higher prices
HBS has been working with our clients
Keeping them apprised of the opportunity
For the savings this presents
The basis (transportation cost)
Is inverted
That means the longer you go out
The less expensive it is
We have never seen this
In the 12 years we have been
Servicing the deregulated market
By locking in a
3 to 4 year
Basis position
Clients have been able
To add more certainty
To their future
Natural gas cost
This will allow the client to
Concentrate on managing the cost
Of the Nymex
ie: (gas out of the ground)
During the highest usage months
November thru March
For most clients
That is when 75% of their
Annual natural gas usage
Is consumed
Feel free to contact us…..
To learn more about
How you are able
To save in the deregulated
Natural Gas and Electric markets
Start the New Year off with Savings
That will always bring a
Smile to your face….
Hutchinson Business Solutions
Smart Solutions for Smart Business
For more insight contact george@hbsadvantage.com
Visit us on the web http://www.hutchinsonbusinesssolutions.com