Inching Up
June 1, 2012
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
Visit us on the web www.hutchinsonbusinesssolutions.com
What’s Up with Deregulated Energy?
March 8, 2010
I have been getting a lot of feedback recently from many clients. They are all saying the same thing, “ What’s going on with the energy market, seems like everyone is starting to sell energy.”
That’s a good point! Energy prices are the most competitive they have been in the last 4 to 5 years and many people are trying to jump on the bandwagon.
Hutchinson Business Solutions (HBS) has been selling both gas and electric for the last 10 years. We represent all the major providers licensed to sell energy in New Jersey and that puts us in a unique position. We do not just represent 1 company. We are an independent energy broker, able to shop both your natural gas and electric accounts to all the providers, finding you the best opportunity for savings.
You will be surprised by some of the disparity of prices we find between the various providers, although they all seem to offer a savings over the current price to compare from your local provider. What needs to be understood is that each provider may have what is known as a sweet spot ie. those markets where they are more competitive.
Electric Opportunity
We recently presented a proposal to a client where the price to compare from PSEG was $.1162 cents per kwh. One of our providers submitted a proposal of $.109 cents per kwh, while another one came in at $.103 cents per kwh. By shopping the account we were able to provide more value with greater savings.
Another thing that you must be aware of, while looking at your electric price in the deregulated market, be certain that the price is fully loaded and includes all the tarrifs and Sales Tax. I have seen where a client has been given a proposal with these items left out. What might look like a better deal can in fact be deceptive for the actual price will include a 7% loss allowance and also 7% sales tax. The loss allowance and the sales tax is already included in your price to compare from the local provider. To make the proposal apples to apples this must be included.
Should you like to know more about your opportunity for savings in the deregulated electric market email george@hbsadvantage.com We offer a free analysis of your cost and will present a proposal of the opportunities based on your current demand and annual usage.
Natural Gas Opportunity
There are also opportunities available in the natural gas market. If you are currently receiving natural gas from your local provider; remember that they are purchasing natural gas wholesale and selling it to you retail. Each month the price of natural gas changes from the provider based on current market conditions. Should you have floated your account in the deregulated market over the past year buying your natural gas thru HBS, you would have saved from 10% to 20% depending on who your local provider is.
We also offer the option to lock your price on natural gas from 1 year up to 2 years or more. Some companies prefer this option for it offers certainty as to what they will be paying over the life of the contract and protects their account from market price fluctuations.
Should you like to know more about your opportunity for savings in the deregulated natural gas market email george@hbsadvantage.com We offer a free analysis of your cost and will present a proposal of the opportunities based on your current demand and annual usage.
Hutchinson Business Solutions does not charge any additional fees for our services. As stated, we are an independent energy broker and receive a small residual from our providers during the life of the contract. Therefore, all the savings fall to the bottom line.
There are minimum usages that may qualify your account to be able to participate in the deregulated market. Normally, if you are spending on average of $2000 a month on natural gas or a minimum of $5000 a month on electric, you should be looking at the opportunities for savings in the deregulated market.
Savings in Deregulated Natural Gas and Electric Market
February 20, 2010
Years ago, AT&T ruled the U.S. telecommunications industry. However, once deregulation was introduced, it opened the field to competition and allowed customers to shop for alternative carriers.
The same rings true for the energy marketplace, which saw deregulation gain momentum in the late 1990’s, giving customers a choice of energy suppliers, products and prices in their utility jurisdictions. There are approximately 20 states today with deregulated natural gas and approximately 15 with deregulated electricity.
Natural gas market
In the past 20 years, the majority of new electric generating plants have been designed to run on natural gas. When the pipelines were deregulated and the fuel was labeled “clean”, federal, state and local governments pushed for natural gas’s usage and consumers responded by using more gas every year since.
Natural gas has a relatively non-polluting production cycle and poses very little risk when it’s transported in pipelines. There also aren’t the emissions you have with shipping fuel by trucks and ships.
Yor current local utility provider buys natural gas in the wholesale market and then sells it to their customers at retail prices. We put our clients in a wholesale position.
Expanding electricity
Unlike the natural gas market, it’s trickier to deregulate the electricity industry. Whereas the former has a direct line from well to pipeline to user, electricity comes from multiple sources, including nuclear, coal, oil, natural gas and renewable energies.
Deregulation of electricity allows for competion for the purchase of your electric supply in the local market and this means savings for you.
Your natural gas and electric is still delivered by your local provider. Should there and be any service issues or disruption, your local provider is still responsible for servicing the account.
Hutchinson Business Solutions is an independent broker reresenting all the major deregulated providers selling natural gas and electric in the tri state area for the last 10 years.
We offer a free analysis of your current annual natural gas and electric supply cost. Our clients are finding savings from 11% upto 48%.
For more information and to order your free energy analysis email george@hbsadvantage.com
How to save money on your Electric Bill
February 6, 2010
- Regulated distribution of power, which is still only provided by the utility, and
- Supply (called BGS) of the electric commodity (open to competition)