As reported by Save on Energy.com

New Jersey

Electric:

New Jersey opened its electricity industry to competition in 1999. Each of the four electric utilities (PSE&G, Jersey Central Power & Light, Atlantic City Electric and Rockland Electric) now offer customers the chance to save money by shopping for the supply portion of their electric bill.

The utilities sold off their power plants, and now only own the transmission and distribution wires, while also providing “backstop” power to customers who do not shop for electricity. With the move to competition, New Jersey utilities have separated their service into two parts:

• Regulated distribution of power, which is still only provided by the utility, and     • Supply of the electric commodity, which is open to competition.

Customers can choose to receive their electric supply from their utility, or an alternate energy provider.

Customers who do not choose an alternative energy provider are served on each utility’s Basic Generation Service (BGS). The price for Basic Generation Service is determined annually through auctions held by the utilities.

For large customers above 750 kW, called the Commercial and Industrial Energy Pricing or CIEP class, the BGS price is set at hourly prices in the wholesale PJM market. These prices can be extremely volatile, so most large customers choose an alternate (or third-party) energy provider for price stability.

Customers under 750 kW are known as the BGS Fixed Pricing Class, and receive a flat, annual rate from the auction, although it may be seasonally adjusted.

Customers who choose an alternate energy provider still have their power delivered to them by their local utility, and contact their utility for all outage reporting. Customers can choose to receive either a single bill from their utility for their delivery service and energy supply service, or can receive two bills, one from each company.

Our Perspective:

Natural gas prices are near a 10 year low.  Because 30% of electricity is generated with natural gas  we have seen very competitive in this area also.

Deregulation gives the consumer a choice to buy their energy supply on the open market at wholesale prices as oppose to buying energy from the local provider at default prices that are normally higher. If you are not currently buying energy thru a 3rd party provider, it is something you should take the time to look at. Businesses and now residential clients are finding substantial savings by fixing the cost of their electric and natural gas supply cost.

 

To learn more email george@hbsadvantage.com

 

Generation: Net generation in the United States rose 8.0 percent from June 2009 to June 2010. The National Oceanic and Atmospheric Administration (NOAA) reported that the contiguous U.S. temperature-related energy demand (REDTI) was the second highest June value on record as “the unusual warmth in the highly populated South and Southeast” weighed heavily. The Federal Reserve reported that industrial production was 8.2 percent higher than it had been in June 2009, the sixth consecutive month that industrial production was higher than it had been in the corresponding months of the previous year.

The rise in coal-fired generation was the largest absolute fuel-specific increase from June 2009 to June 2010 as it was up 17,483 thousand megawatthours or 11.8 percent, and represented over three-fifths of the overall national rise in generation. Texas, Ohio, Alabama, and Pennsylvania showed the biggest gains over June 2009, but the gains were widespread as only 8 of the 48 States reporting coal-fired generation showed lower totals in June 2010. Natural gas-fired generation was second to coal as it was up 8,121 thousand megawatthours, or 9.6 percent. New York, Florida, Massachusetts, Virginia, and Louisiana accounted for 62.0 percent of the national increase. Nuclear generation was down 2.1 percent or 1,434 thousand megawatthours – the largest absolute fuel-specific decline – as there were refueling outages at the Davis Besse, Crystal River, and H B Robinson plants that led to generation totals for these three plants that were far below what they had been in June 2009.

Generation from conventional hydroelectric sources increased 0.6 percent, or 164 thousand megawatthours. The higher level of hydroelectric generation in California was by far the largest contributor to the national rise. Generation from wind was up 44.2 percent, or 2,388 thousand megawatthours. Wind was the energy source with the third-highest absolute megawatthour increase over June 2009. Increased wind generation in Texas, Washington, Kansas, and Oklahoma accounted for 55.1 percent of the national rise. Petroleum liquid-fired generation was up 28.8 percent compared to a year ago, but its overall share of net generation continued to be quite small compared to coal, nuclear, natural gas-fired, and hydroelectric sources. Figure 1 shows net generation by month for the last 12 months.

Figure 1: Net Generation by Major Energy Source:
Total (All Sectors), July 2009 through June 2010

Year-to-date, total net generation increased 3.4 percent from 2009 levels. Net generation attributable to coal-fired plants rose 6.2 percent. Natural gas-fired generation was up 5.2 percent. Nuclear generation declined 1.3 percent, and petroleum liquid-fired generation was down 23.4 percent.

Year-to-date, coal-fired plants contributed 45.9 percent of the power generated in the United States. Natural gas-fired plants contributed 21.8 percent, and nuclear plants contributed 19.9 percent. Of the 0.9 percent contributed by petroleum-fired plants, petroleum liquids represented 0.6 percent, with the remainder from petroleum coke. Conventional hydroelectric sources provided 6.8 percent of the total, while other renewables (biomass, geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining 4.4 percent of electric power (Figure 2).

Figure 2: Net Generation Shares by Energy Source:
Total (All Sectors), Year-to-Date through June, 2010

Consumption of Fuels: Consumption of coal for power generation in June 2010 was up 10.4 percent compared to June 2009. Consumption of natural gas rose 10.0 percent. For the same time period, consumption of petroleum liquids was up 27.9 percent, while petroleum coke rose 15.2 percent.

Deregulation FAQ.

May 24, 2010

As reported in NJ Electricity Review

New Jersey Electricity Review

Your Current Electric Provider
Since New Jersey restructured its electricity market, the incumbent providers (PSEG, JCPL, Atlantic City Electric (Conectiv), Rockland Electric) are now solely in the business of managing the lines and wires portion of your electricity service. They are not in the business of offering competitive supply prices. However, they have been given the responsibility to provide high default rates for those business consumers who have not chosen a competitive supplier.
 
Why should I get off of the Default Rate?

There is a misconception in New Jersey that your current provider will be upset if you choose another company to supply your energy. This could not be more untrue. The incumbent providers (PSEG, JCPL, ACE, Rockland) are regulated lines and wires companies whose revenues and profit margins are managed by the state. They do not receive profits for the supply portion of the bill and would rather see all of their customers receive supply service from alternative providers so that they can focus on the reliability and customer service of the power lines.

However, because deregulation is a fairly new concept, the New Jersey State Public Commission Board has mandated that the incumbent providers provide a default service for those customers who are slow to choose a competitive supplier. Due to recent market conditions, the fixed rates that are available in the competitive market are significantly lower than the high default rates, by as much as 15-30% .

 
What Does Deregulation Mean to Me?The deregulated energy market in New Jersey provides the opportunity for all businesses to experience huge savings in their energy spending. The hurdle is knowing when and how to see these savings. Fixed generation rates, bandwidth limitations, ancillary charges, congestion fees, and blend-and-extend price adjustment clauses are just a few elements worth understanding to realize your potential savings.
 
How Can I Save Money?In order to see the maximum savings it is essential to work with a firm who represents you, not the provider, and who are experts in all deregulated energy markets, electricity contract negotiations, and the natural gas market..

By representing your company or organization we will force several providers to compete for your business resulting in lower rates and more favorable contract concessions. We will provide you with a full savings analysis that will compare your current default rate versus the low fixed rates we are able to find. Once the contract is executed we will continue to monitor the market on your behalf and look for opportunities to renegotiate and lower the rate even further.

 

Should you like to know more about opportunities to save in the NJ deregulated natural gas and electric market email george@hbsadvantage.com

Come to think of it

June 16, 2009

Has the recent turndown in the economy had an effect on your business?

What steps have you taken to tighten the belt?

Did you reduce the workforce? 

Did you reduce or drop employee benefits? 

In difficult times you may find you have to think outside the box. Reducing the workforce and employee benefits are obvious choices. 

There are diamonds in the rough out there! 

Where you ask? If you only knew!

 Most companies budget for expenses and never really drill down to see if there are opportunities for savings.

 Deregulated Energy: Natural Gas and Electric

 Is your company paying more than $5000 a month on natural gas or electric for your building! 

The deregulated Gas and electric market is the lowest it has been in the last 3 to 4 years. 

Our clients are saving from 15% to 30% on natural gas. 

 

Just in the last week, we saved a client over $45,000 by locking in their Natural gas for the next 12 months.

 

Our electric clients are saving from 6% to 15%

 

Just last week, a client saved over $94,000 by locking in their electric for the next 12 months.

 

How much do you think your company may qualify to save?

The local provider buys gas and electric in the wholesale marker and sells it to you retail.

We put our clients in the wholesale position.

 The savings is yours and falls to the bottom line!

 Voice and Data:

Here is the real sleeper. Many companies feel they wear a safety blanket for they have Verizon or ATT as their provider.

You are paying a premium for that blanket!

Deregulation allows third party providers to use the Verizon / ATT platform and deliver voice to their clients at a discount.

 Our clients are saving from 15% to 40% on their monthly Voice and Data Billing. 

What is 25% of your bill?

 Come to think of it, we haven’t looked at these costs recently?

 Call Hutchinson Business Solutions 856-857-1230. There is no fee for our services!

 Or you can email george@hbsadvantage.com

 

Let the savings begin!!!!!

AUSTIN – Electricity rates in Texas have soared well above the national average under a 10-year-old deregulation law, according to a study by a coalition of cities.

“As this report illustrates, consumers have paid too much for too long under deregulation,” said Jay Doegey, chairman of the Cities Aggregation Power Project, a non-profit coalition of 103 municipalities.

An industry group immediately challenged the findings, saying the report was based on “flawed reasoning” that resulted in erroneous conclusions.

“The simple fact is that in most parts of the state, there are lower competitive prices today than when prices were regulated,” said the Association of Electric Companies of Texas. “The Texas competitive market is working, even if CAPP thinks otherwise.”

The conflicting viewpoints point to a contentious battle in the 2009 Legislature over electricity rates. Several lawmakers say they plan to pursue legislation to protect consumers from rising costs on a number of fronts, including insurance and utility rates.

The CAPP report examined the impact of Senate Bill 7, which was passed by the Legislature in 1999 in what its sponsors said was an attempt to rein in rising electricity rates.

Our Perspective:

The deregulated utility market was set up to make utility costs more competitive. So far, it seems not to have worked. Prices have increased instead of becoming more competitive. Supply prices have tripled in the last 8 years.

As electric supply cost continue to increase, so does the demand for electricity and this is going to create another problem. It is projected that the demand for electricity is growing about 11/2% a year. In the next 8 – 10 years, we will not be able to support this growth in demand with the existing facilities we have.

What are our options?

Some are saying rolling brownouts! That doesn’t sound like a solution.

What are we going to do about this problem?

The real answer, reduce the demand off the grid and rebuild the existing electric infrastructure and start investing in alternative energy.

Let us know your thoughts? You may leave a comment or email george@hbsadvantage.com

 

New Jersey has a backlog of more than 700 applications for solar power rebates, and property owners have to wait months, even years, to get solar panels installed, according to a report in The New York Times.

The report said the program, which is paid for by surcharges on all utility bills, has been shut down several times during the past three years because applications far outpaced rebate money. Some solar installation companies have had to lay off workers while they waited for rebate checks to be sent.

All this has convinced New Jersey regulators, the report said, that it is time to wean solar energy from public subsidies. The state plans to replace rebates with tradeable energy credits.

With oil prices skyrocketing, demand for solar power is booming, the report said, and the decision is significant because New Jersey has used the rebate program to help install more solar panels than any other state but California.

“We need to do things differently because ratepayers can’t keep paying for rebates indefinitely,” Jeanne Fox, president of New Jersey’s Board of Public Utilities, told The Times.

Our Perspective:

NJ is taking great strides to introduce solar and other forms of alternative energy resources. Faced with an annual projected 1.5% increase in energy demand over the next 8 to 10 years, they fear they will be unable to meet the demand. As a result they have introduces a Energy Master Plan calling for a decrease in demand by 20% by the year 2020. They have also established as a goal to have 22.5% of their energy produced by alternative resources ( solar, wind, geothermal ) by the year 2020.

To provide incentives they have reworked the SREC ( solar renewable energy certificates ) program, increasing the value of the SREC from just over $200 TO $711 as of 6/1/08. The SREC is a commodity that will be traded, you will be assigned a SREC account as soon as a solar panel has been installed and you are producing electricity. One SREC will be paid for every 1000kw of electric produded.

The SREC program is designed to cover 60% – 70% of the installation cost of a solar system. My calculations show that it will cover the cost of the installation over a 15 year period. The payment of The SRECs along with the 30% Federal Energy Tax Credit makes this a home run for businesses.

Gov Rendell is busy persuing a similar plan to promote solar in PA. More on that as the news becomes available.

Bottom Line

With the inabilty to build new power plants to meet the growing demand for energy, the providers are using these funds to underwrite the opportunity of making you the provider and pulling usage off the grid.

Solar has come full circle and has become the talk of the town.

Solar…The New Sexy

Would you like to know more about solar opportunities in NJ and the surrounding Phila areas email george@hbsadvantage.com