 |
EnergyWindow MarketElert TM - April 2005
www.energywindow.com
April Elerts
Maryland -
Due to steep increases
in the summertime Standard Offer Service rates, suppliers are seeing daylight for Type II (medium commercial) customers in Pepco, BG&E and Conectiv for short-term contracts (through October-December).
Cinergy/Ohio -
Customers in Cinergy will be allowed to pay for the privilege of returning to rate stabilized prices (and thus avoiding market-based pricing) during the period ending in December 2008 by paying two riders (the RSC and AAC) while with a competitive supplier (adding possibly $6 to $9/MWH).
Washington DC -
Time's running out to switch in DC. Pepco DC customers must switch to competitive supply prior to their third meter read date from February 8th. Customers with meter read dates after May 8th will no longer be able to switch suppliers until May 31, 2006.
New York, New York
As the energy markets continue to respond to longer-term jitters and defy current supply and demand situation, there is still one market where savings are not driven solely by wholesale energy prices - New York. If you haven't ventured off tariff there yet, you need to be a part of it, and not just in the heart of old New York. Though each New York EDC is different, customers switching off the utility company for electric generation generally receive two regulatory benefits: elimination of tax on regulated delivery charges and an incentive credit awarded just for switching. The table below illustrates the various EDCs and the benefits for switching there. In this case, a price indexed to the energy generation supply (EGS) cost offers a relatively safe, lower cost alternative. Further, enough competitive suppliers are active in New York that it will pay for you to solicit and compare competitive bids. Your price will continue to vary each month as it does with the default EDC price; but it will be lower each month. Most suppliers will also offer the option to fix your price at an opportune time for some paortion of the contract period.
| EDC |
Incentive Credit/kWh |
Est. Tax Savings* |
Total Benefit** |
|
Central Hudson Gas & Electric
|
3-4 mills
|
1 mill
|
4-5 mills
|
|
Con Edison
|
1 mill
|
4-5 mills
|
5-6 mills
|
|
Long Island Power Authority
|
0
|
3-4 mills
|
3-4 mills
|
|
Niagara Mohawk
|
2-4 mills
|
4-5 mills
|
6-9 mills
|
|
NY State Electric & Gas
|
3-5 mills
|
3-4 mills
|
6-9 mills
|
|
Orange & Rockland
|
0
|
3-4 mills
|
3-4 mills
|
|
Rochester Gas & Electric
|
4-5 mills
|
3-4 mills
|
7-9 mills
|
*Tax savings vary based on delivery costs, sales tax status, locality, rate class, and load variations
**Actual benefit is likely to be based on competitive supplier charges
Quick Buyers' Tip
National energy buyers are now scrambling to find the right strategy to beat rising markets, and many are opting to use indexed pricing as a means to "wait and see" if wholesale prices come off. Contracts based on spot prices rather than futures prices have on average rewarded the purchaser over time, but the danger of indexed products is that 1) prices may continue to rise and your price along with it, or 2) you wait for the perfect moment to fix a price (if that's your goal) and it slips by. Though the right indexed product in the right market is a good element in a balanced portfolio, a well-timed longer-term fixed price will almost always beat out a poorly-timed short term indexed price.
New White Paper: Price Trends Inform Strategic Procurement Decisions
If prices seem more difficult to predict than they used to be, it's not your imagination. EnergyWindow presents an informative discussion of current pricing trends and explains why market behavior today is defying historical trends.
Free Market Data and Information Available Here!
EnergyWindow has a wealth of free energy data and information available on our site. Simply follow the link above, register if you haven't already and you'll get instant access to wholesale and spot market energy prices, a searchable database of energy-related articles, links to energy career sites, supply reserves, weather, securities information, the MarketElert archives and much more. It's all there, available 24x7 and, best of all, it's free!
Copyright © 2005 EnergyWindow, Inc. All Rights Reserved.
Was this newsletter useful to you?
Please click here to register your opinion.
Refer this newsletter to a colleague.
Please click here to forward a copy.
EnergyWindow can help you capitalize on these active markets. To learn more, check out
our website www.energywindow.com, email us at customer.support@energywindow.com,
or call us at 877-444-0086.
|
|
 |
|