Natural Gas Deregulation

June 24, 2010

Large market swings offer you big savings.

If you have been following market prices for natural gas, over the past couple of years, you have probably noticed the large market swings. 

In 2008, PSEG prices ranged from $1.07 per therm in February to $1.64 per therm in July.

In 2009, prices dropped and we saw $.889 cents per therm in January with a low of $.496 cents a therm in September. 

This is good news for those interested in saving money in the deregulated natural gas market. PSEG and SJ Gas buy natural gas on the open market wholesale and sell it to their clients retail.

Should you be spending a minimum of $5,000 a month on natural gas for yor business, there is a big opportnity for savings.

With so much market fluctuation, we have been advising our clients to float their accounts, based on the market index.  If you are a PSEG client and chose to float the index over the past 12 months, you would have saved 12%-15% on your supply bill. SJ gas customers would have saved 8%, while NJ Natural gas clients would have saved 13%

Choosing to float the market index does not preclude you “locking in” on a fixed price at any time during the term of the contract. Conversely, if you choose a fixed price, you are unable to change to a float when market prices go down.

Note: Since the prices of natural gas have been so low, we have also seen this play a large effect on the reduction of electric prices in the deregulated market. Did you know that 30% of the electric generated is made from natural gas?

Want to learn more about opportunities to save in the deregulated natural gas market or deregulated electric market email george@hbsadvantage.com or call 856-857-1230.

Visit us on the web www.hutchinsonbusinesssolutions.com

Real-Time Pricing: Now is the Time. From the September 2009 issue of Building Operating Management magazine. The facililities management resource.

Our Perspective:

Below you will find a great article providing the savings opportunity in the deregulated gas and electric market.

It is true we are finding substantial savings for our clients. Energy Prices are the lowest they have been in the last 3 to 4 years. Our clients are saving from 10% upto 25% over what they paid over the last 12 months on gas and electric supply cost.

Based on annual usage, we have seen small clients saving a couple of thousand dollars over the next year, to our larger clients saving from $90,000 upto $300,000 over the next year. 

What would be the potential savings for your company?

All you have to do is ask. There are no fees involved, the savings fall to the bottom line.

Should you like to know more about the utility savings available for your company call 856-857-1230 or send an email to george@hbsadvantage.com

Enjoy the article, click on the link provided below.

via Sagging Energy Rates Creates An Opportunity for Power Purchasers.