The Rumbling Started………

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

Inching Up

While everyone has been keeping

 

Their eyes on gas pump prices

 

 

The big question

 

 

Will it go over $4.00 this summer?

 

 

 

Natural gas has been making its own mark

 

 

 

After nymex prices

 

 

Hit a 10 year low

 

 

In late April

 

 

 

We have seen the Nymex prices

 

Run up

 

 

 

Over 25%

 

 

During the last 30 days

 

 

 

You may have heard me say before….

 

 

 

You don’t know where the floor is

 

Until you passed it

 

 

 

We watched a slow steady fall of the nymex

 

Over a long period of time

 

 

Once it got to a point

 

Where investors may have thought

 

 

It may be…..

 

 

Too low

 

 

 

It shot up

 

 

 

 

Was it a market correction?

 

 

 

Analyst start talking about possibilities

 

Of having a hot summer

 

 

 

That will increase demand…

 

 

 

 

For 30% of the electric is generated

 

From natural gas.

 

 

 

Prices inch up

 

 

 

 

They also start looking at

 

Hurricane reports

 

 

 

 

That could affect the wells

 

In the Gulf of Mexico

 

 

 

Prices inch up more

 

 

 

 

They have even started to cap

 

Some of the natural gas wells

 

 

 

Hmmm

 

 

Supply / Demand

 

 

 

Cut down on the supply

 

 

That will get the

 

 

 

 

Prices to inch up

 

 

 

 

Higher

 

 

 

 

Market prices are still very competitive

 

 

 

It just that…..

 

 

In this market

 

 

 

Timing is everything

 

 

 

 

Natural gas and electric prices

 

 

Are still very competitive

 

 

 

If you have not participated in deregulation

 

Now is the time…

 

 

To lock in on the savings

 

 

 

Under contract

 

 

 

Now is the time to start looking

 

To lock in your renewals

 

 

 

 

To all HBS customers

 

 

Please take my phone call

 

 

 

 

To learn more contact

 

 

george@hbsadvantage.com

 

Visit us on the web www.hutchinsonbusinesssolutions.com

Your Attention………Please

Residential electric customers

 

 

In…

 

 

 

New Jersey and Pennsylvania….

 

 

 

 

You finally have an opportunity

 

 

 

To lock your electric supply cost

 

 

 

At a fixed price…….

 

 

 

For a

 

 

 

12 month period

 

 

 

 

 

 

This means saving of

 

 

 

Around 15%

 

 

Off your current

 

 

 

Local provider supply cost

 

 

 

 

 

 

If you look at your PSEG residential electric bill

 

 

You will see your…..

 

 

Price to compare

 

 

For electric

 

 

Is around

 

 

 

$.116 cents per kwh

 

 

 

 

Atlantic City Electric customers

 

 

Your bill shows a

 

 

 

Price to compare of around

 

 

 

$.122 cents per kwh

 

 

 

 

We now have a program that will permit

 

 

 

Residential customers in New Jersey

 

 

 

To lock their electric supply cost for

 

 

 

 

 

 

$.0999 cents per kwh

 

 

 

 

For a 12 month period

 

 

 

 

For a typical household

 

 

This provides savings

 

 

 

Of over $300 a year

 

 

 

 

No additional cost

 

 

No transfer fees

 

 

 

No interruption of service

 

 

 

The supply charges will be billed on

 

Your current local provider bill

 

 

 

Best yet…..

 

 

 

Nothing changes…….

 

 

 

Should you have an electrical problem…..

 

 

 

You still will call your local provider

 

To service the account

 

 

 

 

This opportunity is also available for….

 

 

 

All Residential Pennsylvania

 

 

Electric customers

 

 

 

 

(Contact us to find out your rate…….

 

 

 

Your savings are comparable)

 

 

 

 

 

As most of you know…

 

 

 

HBS has been in the deregulated energy business

 

 

Since January 2000

 

 

 

We have been providing

 

 

This service…

 

 

 

For only the commercial market

 

 

 

 

 

 

I get several calls

 

 

Every  week

 

 

From my clients

 

 

Asking……

 

 

 

 

 

Can you help me with my home electric bill……

 

 

 

 

 

Many have faxed or emailed me…….

 

 

 

 

All the special offers they have been receiving

 

 

 

 

Problem was……

 

 

All I found was……

 

 

 

 

Smoke and Mirrors

 

 

 

 

 

They had the sizzle….

 

 

 

 

No contract…..

 

 

 

Month to month……

 

 

 

Low variable rate……..

 

 

They also had……..

 

 

 

 

 

 

Minimal to no $avings

 

 

 

Many have complained to me

 

 

 

They actually paid more

 

 

Than the provider price to compare

 

 

 

 

 

For the first time

 

 

 

We have found

 

 

 

A Residential opportunity

 

 

 

 

That will provide….

 

 

 

 

 

True savings….

 

 

 

 

For your…..

 

 

 

Residential Electric Account

 

 

 

 

Should you like to know more…..

 

 

 

About this saving opportunity

 

 

 

For your home

 

 

Email……..

 

 

george@hbsadvantage.com

 

 

Or call our office 856-857-1230

 

 

 

 

$300 savings

 

 

 

 

For me…..

 

 

It was the equivalent

 

 

 

Of getting 1 month

 

 

 

Free electric a year

 

 

Visit our website: www.hutchinsonbusinesssolutions.com   to learn more about opportunities available to provide savings.

 

Tonight’s the Night

Tonight’s the night…..

 

Hurricane Swartz makes his long range winter forecast…

 

 

 

You know the guy with the bowtie?

 

 

How cold is it going to be?

 

How much snow will we get?

 

 

Remember last year?

 

We had that big snowstorm right around Thanksgiving…

 

 

What’s going on with this weather?

 

Here it is mid-November…..

 

Janet and I just got our winter clothes out

 

 

 

Dealing in the energy market

 

The one constant we discuss is temperature

 

 

Back in September

 

We were getting reports saying

 

 

 

The long range forecast calls for an exceptionally cold November

 

 

When will that start……

 

 

November 30^th

 

 

 

Those statements kept pushing natural gas prices up

 

 

We held firm….

 

 

We waited….

 

 

We’ll see….

 

 

Here it is mid-November and temperatures are still in the 60s

 

Natural gas prices keep dropping

 

 

A whole market opportunity has opened up

 

 

With prices so low

 

We start to measure risk

 

 

How much lower can prices go?

 

 

 

Don’t you love this kind of stuff?

 

 

 

 

Can natural gas prices go lower?

 

 

Yes!!!

 

But there is more upside risk

 

 

 

With prices being sooooo low,

 

 

 

One cold snap and …

 

 

The market price can jump up fast…

 

 

 

It’s called the whiplash effect

 

 

 

Prices always go up faster…

 

 

And then they take their good old time coming back down

 

 

 

Now here’s my shameless HBS plug

 

 

For those businesses still buying natural gas from their local provider

 

This is a great time to lock into a very competitive fixed price contract

 

 

 

There we go….

 

I said it

 

 

Now the disclaimer…

 

 

Some circumstances may not allow you to qualify

 

            Your monthly usage may be too small

 

                                          or

           

            We find stop service notices on your bill

 

 

 

 

 

Pick it up Hutch

 

 

Let’s get back on topic

 

 

Ohhhhh…..OK

 

 

 

So……..

 

Hurricane….

 

 

What will you say?

 

 

How cold will it be?

 

 

How much snow will we get?

 

 

 

I just bought a new snow shovel last year

 

 

I’ll be ready

 

 

 

PS: This was written on Wednesday. If you want to know what Hurricane said, you will have to go online and Google it.

Most in Pa. avoid shopping for electricity supplier

By Andrew Maykuth

Inquirer Staff Writer

Pennsylvania electricity customers are skeptical they can save much by
shopping for power.

Although 88 percent of customers say they are aware they can switch to
alternative suppliers, only 45 percent have shopped, according to a statewide
survey conducted by Terry Madonna Opinion Research.

Twenty-three percent of residential customers statewide have switched,
according to the Pennsylvania Public Utility Commission. About 1.4 million
customers have switched.

Madonna and several electricity suppliers told the PUC on Thursday that
nearly a year after Pennsylvania’s retail utility deregulation went into full
effect, the public remains wary of shopping.

“There are a fair number of people who did not look into changing an electric
supplier because they didn’t believe there would be long-term savings in it,”
said Madonna, director of the Center for Politics and Public Affairs at Franklin
and Marshall College in Lancaster.

The poll results were presented Thursday at a PUC hearing on competition.

The surveys found that price was the main concern driving customers to
switch, but many said the perceived savings were insufficient to make them
switch.

Suppliers said some residential customers have recorded savings up to $300 a
year.

Madonna, who conducted his telephone survey of 801 customers in September on
behalf of Constellation Energy, said 78 percent said they would consider
switching if they could save 10 percent on their generation charge.

Many customers who declined to shop said they were happy with their current
supplier regardless of the cost.

Madonna’s findings were echoed by an Internet survey of 450 customers
conducted by AlphaBuyer, a Paoli group- buyer that markets online.

Forty percent of the customers said the savings were not worth it, said Kevin
McCloskey, AlphaBuyer’s chief operating officer. About 24 percent said shopping
was too confusing or the choices overwhelming. About 15 percent said switching
was too risky or that it was a “scam.”

Under Pennsylvania’s Electric Choice law, customers can choose a company that
markets the power. Billing is still conducted by the incumbent utility company,
which collects a fee for distributing the power.

Customers who don’t switch are still supplied by the utility at a default
rate.

Only 18 percent of customers had visited the PUC’s website for choosing a
supplier. PUC members said more customer education was needed.

“It’s perplexing to us with all the tools being made available to customers
we only see 20 percent of the residential customers shopping,” said Robert F.
Powelson, PUC chairman.

Our Perspective:

HBS has been dealing in the deregulated energy market for over 10 years. I have always been suspect of the proposed residential savings in this market.  Most of the time you are offered a floating rate that may offer minimal savings.

The opposite is true in the commercial market. There are providers offering fixed price alternatives that offer a great opportunity for savings. HBS has found great success in the PA commercial deregulated market. We represent all the major providers selling electric in the PA market.

There is no upfront cost. Deregulated savings in the energy market has been a welcomed windfall for any business in both the New Jersey and Peennsylvania market who willing to look at the opportunity.

 

Read more: http://www.philly.com/philly/business/20111111_Most_in_Pa__avoid_shopping_for_electricity_supplier.html#ixzz1ddcYbDS5

After switching from Peco, one customer sees the danger of a variable rate

As printed in philly.com

 

LindaPeterson  of West Chester was eager to switch from Peco Energy Co. at the end of last year.
She signed up for an alternative electricity supplier offering avariable rate that would fluctuate depending upon market conditions.

AsPeterson  discovered, variable rates sure can vary.

For a few months this year, Peterson’s rate was very attractive, indeed. But it went up
58 percent from May to June. At 15.63 cents per kilowatt hour – that’s just the
generation charge – her last bill was about $23 more than it would have been had
she stayed with Peco.

“I knew there would be some variation, but that’s just a huge, huge increase,” said
Peterson, who is semi-retired.

A representative from her supplier, Palmco Power PA L.L.C., did not return a phone call about
Peterson’s bill. But its customer-service department, in an unsigned e-mail,
blamed an “unusual” wholesale price spike for the increase.

“Thankfully,however, shortly after the wholesale price increase, wholesale prices dropped,and our
price billed to our customers dropped accordingly,” it said.

In Pennsylvania’s buyer-beware world of deregulated utilities, Peterson can’t do much but switch to
another supplier. Her agreement, like most with variablerates, does not carry an
early cancellation fee.

According to the state Public Utility Commission, a supplier can bill a variable-rate customer
at whatever price it believes the market will bear, even if the customer
originally thought he or she was getting a discount.

A company also can offer different rates to different customers. The variable rate that is
on a customer’s bill does not have to be the same as the initial price posted on
the PUC’s website, http://PAPowerSwitch.com.

“A supplier could have one rate for PowerSwitch . . . while offering a different rate
door-to-door . . . yet a different rate for enrolling by mail,”Denise McCracken,
the PUC’s spokeswoman, said in an e-mail. “They could offer me one rate . . . my
neighbor a different rate (as long as they are not discriminatingon the basis of
race, gender, etc. of course).”

In Pennsylvania and New Jersey, where dozens of electrical suppliers are competing, customers
accustomed to a lifetime of regulated utility prices now face a dizzying array of
choices – fixed rates, variable rates, and”green” rates from renewable-power
generators. Next year, Peco customers will begin seeing rates that vary hourly,
according to the market.

More than 20 percent of Peco customers have switched since Jan. 1. But despite promises of
savings, most residential customers seem unwilling to leave the protective comfort of the regulated utility.

On Monday, the Retail Energy Supply Association launched a campaign to educate customers
about the benefits of switching, but it faces headwinds generated bycustomers such as Peterson, who share their experiences.

“My neighbors are very scared about switching,” said Peterson, a clinical social worker with a
small private practice.

Peterson was an early adopter of electricity choice. She had switched suppliers in the late
1990s, when limited deregulation was introduced into the Peco market. Competitive
suppliers eventually pulled out because they could no longer beat the utility’s
capped rates. But when Peco’s rate limits were lifted at the endof 2010,
competitive suppliers returned en masse.

Peterson signed up with Palmco, the marketing arm of a Brooklyn fuel-oil dealer, which posted a
price on the PUC’s website. She liked the company’s low-key marketing,compared
with the blustery direct-mail appeals she received from bigger suppliers.

“The fact that they weren’t doing a lot of heavy marketing, I guess I trusted them
a little,” she said. “I didn’t expect them to escalate the price like that.”

According to a review of Peterson’s bills, Palmco’s rate was very generous during the first
few months. It charged her an introductory rate of 5.78 cents perkilowatt hour,
clearly a below-market 42 percent off Peco’s rate. But by May,Palmco’s rate had
increased to 9.91 cents – just about the same rate Peco was charging.

And then in June came the whopping 58 percent increase – to 15.63 cents per kilowatt hour.
Peterson averages about 475 kilowatt hours a month.

The owner of Palmco, Robert Palmese, did not return a phone call. But his
company’scustomer-service department offered this response:

“Our family has been in the energy business since 1938, 73 years. We know from experience
that it is always in the best interest of our customers to keep prices for energy
as low as possible.”

In an interview in October, Palmese offered reassurance to customers who might consider
his company.

“We have very casual marketing,” he said. “We’d like our customers tolike us. Just try
us, you may like us.

“You are always free to leave.”

 

Our Perspective

HBS is a independent deregulated energy management consultant. We have been providing deregulated energy solutions to our clients since 2000. We have heard stories like the one experienced above, countless times.

While the energy market prices are at their low point, it would be smart to lock into a fixed price contract for natural gas or electric for a minimum of 1 year but also be willing to look at the 2 year option. Fixed priced contracts normally provide a 10% to 15% savings under what Peco ic currently charging.

Do not be fooled by the variable rate options.

It is a good marketing ploy….

no contract…

month to month float….

But you will only pay more in the long run.

 

To learn more about deregulated opportunities for yopur business email

george@hbsadvantage.com

Visit us on the web www.hutchinsonbusinesssolutions.com

What’s Up?

I say potato.

You say patato.

The difference may be just an inflection

Or the pronunciation of the word

(in this case it was my spelling, so you get the gist)

However, we all know what we are discussing.

Shame that the same thing cannot be said

About the word…….

Deregulation……

We should all know what we are discussing

We should all be on the same page…..

But there are so many stories……

Each one providing the best deal……..

A once in a lifetime offer……

Get in on the ground floor…….

What is going on????

With electric prices being at a 7 year low

We are finding, that everyone and their brothers,

Are now selling energy………

I get calls at my office almost….. everyday

Would like to switch electric providers?

How would you like to earn some extra cash?

The market is being inundated.

I am surprised Comcast and Verizon are not selling energy?

HBS has been selling energy to commercial clients for over 10 years

I would like to take a few moments to add our perspective.

Define what we see as the opportunity.

Educate our clients and friends.

Business

 

 

• The deregulated electric market price is closely tied to natural gas pricing.

 

•  
  • Thirty ( 30%) of the electric generated in the US is made with natural gas. Therefore, natural gas is a good indicator of the market prices.

 

• Natural gas market prices are the lowest they have been in the last 4 years.

 

•  
  • As a result, the deregulated market price of electric has also dropped.

 

• Many experts think that we may have hit the floor on natural gas prices back at the end of October 2010.

 

•  
  • The market has gone up and down several times since then, but it has never gone back to the low point recorded on October 25^th, 2010.

 

This information indicates that clients should be looking to lock in or fix the price of electric with a 3^rd party deregulated provider for a minimum of 1 year…… possibly 2 years.

We have actually seen instances where the 2 year fixed price is more competitive and offers more savings.

Each account is unique. Prices are all based on demand factors.

Are you a seasonal account?

(Highest usages during summer months)

Do you use most of your energy during the day?

(On Peak….when prices are higher)

Or do you have mixed usage?

(On Peak and Off Peak)

All these factors play into defining the deregulated market rate for your account.

Do you have annual usage demands

vs seasonal usage demands……

Your fixed rate will be lower.

(your demand usage is being spread out over the entire year)

Is your usage a mixed between on peak usages and off peak usages

vs only using power during the day,

when rates are the highest

Then your rates will be lower.

Each provider has their sweet spot. A client profile, they are most competitive with in that market.

HBS is an independent energy management consultant. Thru our strategic partnerships, we represent all the major deregulated gas and electric providers selling energy in deregulated states.

Our expertise is the ability to properly define the market and select the provider(s) who will bring the most competitive fixed rate, offering the best opportunity for savings to our clients.

What about Variable rates?

There are many companies now offering variable rates for electric.

Month to month contracts….offering savings of around 10%.

If the market prices are near the bottom,

Why would it not be in the clients’ best interest to lock in a fixed rate instead of floating with a variable rate?

As the summer season starts,

Market rates will also go up,

Due to summer demand.

So will those variable rates!!!!

It only makes sense to lock in on a fixed price,

if the market presents the opportunity.

In the deregulated energy market,

You are dealing with a commodity.

Timing is everything.

Let HBS be your eyes and ears.

Next week, we will outline using an independent broker vs buying online. Also, what does it mean when you say the price is fully loaded

To learn more about deregulated opportunities for your company email george@hbsadvanatge.com  

Visit us on the web www.hutchinsonbusinesssolutions.com

Saving in the Deregulated Utility Market

Note: With the current deregulated market opportunities now being presented to many business that qualify, the market has been inundated with new sales personnel. I found this article provides on objective overview of questions you should ask and details you should know before making a decision.

There are many companies offering variable electric rates. I would not recommend this solution at this time.

With natural gas prices being the lowest they have been in the last 3 or 4 years, there are great opportunities to lock into a fixed price electric contract for a 1 or 2 year period.

By Carl Shaw

With the deregulation of energy in many parts of the US, competition is now allowed between energy companies to provide electricity at discounted rates directly to their customers. These Energy Service Provider Companies (ESCOs) are licensed by individual states and are required to adhere to the applicable regulatory guidelines set by the Public Service Commissions (PSC) or Public Utility Commission (PUC).  Customers (end-users) also have the opportunity to work with electricity brokers or consultants who can compare different offers and provide additional services to help manage your monthly energy spending and costs.

If you are a business spending a minimum of $3000 a month  on your electric or natural gas bill, you may qualify to choose your electric or natural gas supplier in deregulated markets, which could create savings opportunities. Companies that can control or manage their electric consumption to use more electricity in the off-peak hours will find the greatest opportunity for savings. In deregulated markets, you now have a choice and can choose lower energy rates without any risk or local service change.

Your local energy service providers buy natural gas and electricity on the open market at wholesale prices based on the current market conditions and then bill their customers at increased rates to include margins and/or service fees.

Independent Deregulated brokers can put your company in a competitive position by leveraging extensive buying power to help you develop energy supply procurement programs. They can conduct an unbiased rate and tariff analyses that may result in substantial savings to you. 

Due to the current economic conditions and the complications deregulation has caused there are many new energy advisory companies popping up, so be sure to know all the facts before making any decision.

When choosing a qualified utility tariff analysis & rate optimization firm to represent you, you should be aware of a few things:

First, be sure that the price you are quoted from your local provider includes all charges. Should you be talking to a consultant or broker, make sure the price is “fully loaded” meaning, does it include the 7% loss allowance (to deliver 100,000 kWh of electric, the providers must actually send 107,000 kWh, for there is a 7% loss in transmission)? Also does it include the local sales tax?

In PA, you must also ask if the price includes GRT (gross receipt tax) and RMR (reliabilty must run). RMR is a pass thru charge from the provider that allows them to meet peak demand periods when they must use additional resources to meet this demand. This is normally found during the summer months.

All these important components should be included in the quote from your deregulated provider to make an accurate comparison. These components are included in your price to compare from your local provider.  Often, companies will provide a low end quote without including sales tax and a load allowance. Be sure you are comparing apples to apples. Often when these figures are included, their real quote is much higher.

Does the company providing your quote have an Energy Information Management System in place, to make sure that you are getting the best available rate?

Are they shopping your account to more than 1 provider. Each provider has a sweet spot (a market they are most competitive in). An independent broker who knows the market will be able to identify these providers and work to get the best price.

Information is power. Knowing what questions to ask will save you time and money.

There are opportunities to save from 10% to 25% in the deregulated electric market depending on your usage patterns.

When making a final decision, know that you are dealing with a commodity and timing is everything. Market fluctuations may happen on a daily basis.

Best Time

When is the best time to buy energy in the deregulated market?

I have heard statements from clients saying, “Let’s wait to July or August and then we’ll look at it.”

This seems to be a common misconception. When buying a commodity, we are dealing with a fluid market.

Prices are constantly changing.

During the last 4 years, we have seen the Nymex go from a high of $13.105 in July 2008 to a low of $2.843 in September of 2009.

What is the Nymex?

The current price of natural gas out of the ground in the Gulf of Mexico to the shores of Louisiana.

When quoting fixed natural gas prices we must add the basis cost, which is the cost of transporting natural gas from the shores of Louisiana to the gate of the local provider (PSEG, SJ Gas, PGW, Peco  etc).

The Nymex is normally used as a gauge to determine where the natural gas and electric markets are at any given point of the day.

Nymex is up, means that gas and electric prices will be increasing

Conversely,

Nymex is down, means that gas and electric prices will be dropping.

This is not necessarily a proportional shift but it is a good indicator.

I went back over those 4 years and looked to see when the Nymex was at its’ highest and lowest points.

Year        Average Cost        Lowest   Month   Highest   Month

2007       $6.376 dth            $5.43      Sept        $7.558    April

2008       $8.437 dth            $6.469   Nov        $13.105   July

2009       $3.475 dth            $2.843     Sept      $6.136     Jan

2010       $3.908 dth            $3.292     Nov       $5.814     Jan

Our goal at HBS is to properly monitor the market swings and to communicate with our clients when the opportunities present the best value.

Dealing with a utility is not like dealing with other contracts in business.

You do not have to wait for the contract to expire.

There is no guarantee that the best opportunity will be available.

As of this writing the Nymex is at $3.93 and it is only mid-February.

Could the market go lower?

Yes..

But there is more of an upside risk!

Prices could easily go higher.

 

How much lower will the market go?

The floor is not determined until it passes

And then it may be too late.

When dealing with a commodity….

Timing is everything!

I often say that a client who buys deregulated utilities is like a person who shops at Syms.

“An educated consumer is our best customer.”

HBS strives to educate our clients and keep them informed,

Providing…

Smart Solutions for Smart Business

If you would like to know more about deregulated utilities and your business call 856-857-1230 or email george@hbsadvantage.com

Why Businesses Should Use an Electricity Broker to Shop For Electricity

 November 30th, 2010 Adam Ebner

As reported in Nationwide Deregulated Energy News

In a very competitive marketplace, energy deregulation gives businesses better control of their business electricity costs. Aside from that, there are myriad other benefits and option that their companies would get from a deregulated and competitive energy market – options that were not possible in the past due to high energy expenses and limitations set by the monopolized energy industry.

The deregulation of the many utilities markets gave birth to the emergence of several retail electric providers all competing for subscriptions from both residential and commercial energy users in the state and in energy deregulated cities such as Philadelphia, Pittsburgh, New York City, Chicago, Washington DC, Houston, Dallas and many others. Now given the power to choose, selecting from over 50 retail electricity providers can be a daunting task indeed; with businesses finding themselves at the losing end should they fail to choose the best provider for their needs. This is why businesses should work in partnership with certified electricity brokers to negotiate in their behalf the best electrical rates, payment schemes and other amenities from the various Texas electric companies.

Electricity Brokers:

Your Helping Hand Unlike electricity management at home, businesses have more complex processes and operational needs for electricity that if not managed would find them dealing with extremely high energy costs that would eventually affect their bottom line. Electricity brokers can come into the picture and help businesses find ways on how they can efficiently use Texas electricity and help them minimize their energy costs. These brokers deal and negotiate electrical rates with retail electric providers for the benefit of the business.

No matter what business or industry your company may be in, electricity brokers can provide professional services using up-to-date information of the energy market in a bid to obtain the best commercial electricity deals for the company.

Why Should You Use Electricity Brokers to Shop Electricity?

Businesses may not have the resources available to have an independent study or analysis of the various retail electric providers offering commercial electricity before they switch and commit to the services of one. Aside from this, companies may have to deal with all the other elements in the very complex energy market such as new regulations, changes in fees, penalties, reduction of carbon emissions, etc. Hiring an electricity broker can spare the company from all these, so that all their staff and resources can focus on only one thing – doing business.

Electricity brokers can help companies with their procurement decision, eliminate possible over payments, recover over payments, management of energy consumption, and continuous energy usage analysis. Electricity brokers can uncover and identify areas in the business processes where they can implement significant improvements. These brokers are not in any way tied up with any major retail electric provider, allowing them to give unbiased advice to businesses and help them get the best energy solutions for their companies.

Our Perspective:

Hutchinson Business Solutions (HBS) is an independent energy management company. We represent all the major providers selling deregulated energy in deregulated states. We will do a full analysis of your account and shop your account with our  providers to find the best value and savings for your company.

HBS clients are finding savings from 10% to 20% in the deregulated utility market.

To learn more email george@hbsadvantage.com