Tonight’s the Night

November 21, 2011

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 30th

 

 

 

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.

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Where’s The Bottom

November 12, 2010

Natural gas prices continue being very competitive. 

How low will they go? 

Hurricane season does not officially end until November 30th, however it is rare to see a tropical storm in the Gulf this late in the season. The 2010 Atlantic Hurricane season was very active this year, with 19 named storms. The last time I looked we were up to T for Toma. 

Here we are heading into the end of November and natural gas nymex prices are still under $4.00. 

Where is the bottom? 

Without a crystal ball, this ends up being a very difficult question to answer. 

When you look at the overall picture not much has changed, Storage levels are still at a 5-year high and holding. It has been like that for several years now.

 We do have the Marcellus gas in Western PA. Some geologists estimate that it could yield enough gas to supply the entire East Coast for 50 years.

 That must prove to be the major factor. It is the old supply demand scenario?

The bottom line states, that if your business is currently spending a minimum of $3000 a month and you are still with the local provider, you should be looking at buying natural gas from a 3rd party provider in the deregulated market.

Did you know that if you are a PSEG customer, you ended up paying 15% higher for natural gas over the last year?

How much savings would that have equated for your company?

With natural gas prices being so low we have also seen this translate into very competitive deregulated electric prices. We recently signed a client the other day and they will be saving 30% on their electric supply cost for the next 2 years.

I know that savings is a parity of how much you spend but let me ask again.

How much savings would that have equated for your company?

If you are currently spending over $3000 a month on electric and your company is still with the local provider, you should be looking at buying electric from a 3rd party provider in the deregulated market.

To find out more about this opportunity email george@hbsadvantage.com or feel free to call 856-857-1230.

About Deregulation

July 19, 2010

As reported by PSEG

Before Deregulation 

Prior to New Jersey’s restructuring, PSE&G was responsible for generating electricity, transmitting the power to all regions of their service territory, distributing the power to the individual homes and businesses, and billing and service issues.  In addition, they were also responsible for all repairs to the electric lines and equipment.

After Deregulation

As a result of the New Jersey Energy Choice Program, the different responsibilities of the utilities were “unbundled” and the power industry was separated into four divisions: generation, transmission, and distribution, and energy services. The generation sector has been deregulated and, as a result, utilities are no longer the sole producers of electricity. The transmission and distribution sectors remain subject to regulation – either by the federal government or the New Jersey Board of Public Utilities.   No matter which electricity supplier you choose, PSE&G will continue to service the transmission and distribution sectors of your electricity.

Competition is allowed between companies to provide power at discounted rates and superb customer service directly to customers. These companies are licensed by the state of New Jersey.  You also have the opportunity to work with an electricity broker or consultant who can compare different offers and provide additional services to help manage your energy spending.

In most cases, PSE&G will continue to send you your utility bill.  So the only thing that changes if you shop for a better rate is that better rate.

Our Perspective:

Deregulation has presented a great opportunity for busnesses who are spending more than $3000 a month on their electric bills. Open market electric prices are the lowest they have been in over 4 years. HBS clients are saving from10% to 25% on their electric supply cost depending on their uasge patterns. Those businesses that are designed to use more off hours usage, will find the largest opportunity for savings.

To learn more about your opportunity to save in the deregulated energy market  email george@hbsadvantage.com

The deregulated natural gas market is presenting great opportunities for savings for those commercial accounts that are spending a minimum of $3000 per month.

With the recent drop in natural gas prices over the last year, Hutchinson Business Solutions (HBS) is providing savings from 8% to 20% depending on who your local provider is.

Your local provider currently buys natural gas wholesale and then bills their clients retail pricing. HBS puts our clients in a wholesale position.

When looking at historical pricing over the last year, we show that if you are currently a South Jersey Gas customer, your saving would be about 8%. PSEG and NJ Natural Gas customers would find a 15% savings, while Elizabethtown natural gas clients would be saving 20%.

We are currently advising clients interested in participating in the deregulated natural gas savings to float the market. This will continue to benefit them as long as the market stays flat or continues to go down.

If we were to look at fixing a term contract of 12 to 24 months, we often find that the fixed or locked price is actually higher than the 12 month average you have currently been paying. There are clients that do choose to lock a price, for they do not want to deal with market fluctuations and they are interested in adding certainty to their cost. The only problem that may arise is that if the market remains flat or goes down, they are unable to get out of their contract. Should market prices go up, they will not be affected for the price will remain the same.

Should a client choose to float the market, they will take advantage of the lower market prices and if we see the market start to spike up, they will always have the option to lock a price anytime during the term of the contract.

It has always been our goal to make the client aware of all the options available to them and to ultimately making them comfortable with the decision they choose.

Would you like to know more about opportunities to save in the deregulated natural gas market? Email george@hbsadvantage.com or call 856-857-1230.

We have found that savings is the deregulated natural gas and electric market provide great opportunities to add savings to your company, reducing cost and increasing your bottom line.

PSEG Rates for 2010

May 24, 2010

As reported by Electricwatch.org

PSEG Electric Rates for 2010March 7, 2010

Basic Generations Service (BGS) rates for PSEG electric customers have been established for the new year.  BGS rates are the default rate for customers serviced by the utility PSEG who have not shopped for a competitive electricity supplier.  The new rates will go into effect on June 1.

PSEG default rates for the supply portion of the bill are divided into a summer term that begins June 1 and extends through the end of September, and the non summer term that begins October 1 and extends through the end of May 2011.  The default BGS rates include the entire Supply section on customer PSEG bills.  This is often an area of confusion to business customers who look into the benefits of competitive rate shopping.  The total price to compare takes into account the generation rate as well as capacity charges.  When customers just compare the per KWh rate on their current bill they are not getting an apples-to-apples comparison. 

In order to realize the actual price to compare, PSEG business customers should take their total supply charge and divide it by the total amount of KWh they consumed for the bill period.  This will result in a KWh rate that can be compared to offers from competitive suppliers.  This price to compare will include state taxes of 7%.  So if the competive rate does not include taxes (as will be stated on the contract) multiply the rate by 1.07 to get the true comparison rate.

The bottom line is that there are competitive electricity suppliers available for business customers serviced by PSEG.  Depending on the size of the customer and the type of electricity product chosen (fixed, variable, green energy, long term), savings can be as much as 25%.

Our Perspective:

Are you currently participating in the NJ Deregulated electric market? Current market rates are presenting great opportunity for savings.

Hutchinson Business Solutions is an independent energy management company. We have been providing savings for our clients in the deregulated natural gas and electric market since for over 10 years.

Our clients are finding savings from 10% to 25%. Should you like to know more email george@hbsadvantage.com . Local providers buy natural gas and electric on the open market at wholesale prices and then bill their clients retail.

We put our clients in a wholesale position! Many companies are finding deregulated utilities to be a great area for savings and increased cash flow.