When evaluating natural gas contracts, one component that you may consider is the suppliers offering of swing options. Swing refers to your business being able to go above or below the amount to be supplied, while still being billed or credited for any used/unused volume at your fixed or index price. Sometimes also referred to as “contract quantity”, the variance in swing ranges from 0-100%, while most suppliers will give you the option to have 0% swing, 10% swing or 100% swing. Typically, if you choose a 100% swing option,...Continue Reading
The price consumers pay for electric supply is made up of a series of components. Although the price of wholesale energy is often the focus, it is actually only a portion (recently 50% or less) of the overall cost. One element that has recently increased significantly, especially in the New England market, is capacity. Capacity prices are set through periodic auctions where New England power plant owners bid to assure that there will be enough generating capacity on the hottest and coldest days. The bidders compete with each other and...Continue Reading
As your chosen energy consultant, we would like to provide a reminder that Direct Energy, your current supplier, will be conducting a final consolidation of their electricity billing systems. This transition will mean some changes for your accounts as a customer. However, please note that ONLY customers who are currently being dual-billed will be effected (meaning one bill from your utility and a separate bill from Direct Energy your supplier). You should also be receiving correspondence from Direct Energy regarding these changes; however we wanted to make sure you were informed in...Continue Reading
Electric and natural gas suppliers are constantly changing and evolving their business. Power Management is here to assist with these sometimes complicated transitions and work on the customers end to straighten out the details. We wanted to remind you of some changes that a few suppliers will be implementing that may have an effect on your billing over the next couple of months. In February/March 2017, Direct Energy will be conducting a final consolidation of their electricity billing systems–and the legal entities associated with them. You may remember hearing about this when...Continue Reading
Weather and natural gas storage inventories are two variables that are often discussed when analyzing current natural gas prices and where they are anticipated to go. Earlier this year, working natural gas inventories ended the winter heating season at 2,478 Bcf. This exceeded the previous record high of 2,473 Bcf set in March 2012, which again followed a warm winter. Due to record warmth during the winter season and continued high levels of domestic natural gas production, inventory withdrawals during the traditional heating season (November through March) were relatively limited. Analysts...Continue Reading
For Immediate Release: ROCHESTER, NY – RRHA Joint Ventures Corporation has entered into a new agreement with Power Management Company. After extensive consideration, RRHA/JVC chose Power Management to represent the future energy needs of its members. Power Management will offer member institutions access to exclusive member advantages through this new program. RRHA/JVC and Power Management’s shared visions for this partnership are to enhance member options by providing them with competitive pricing, ongoing cost management and comprehensive energy strategies. This new collaboration draws on the distinct strengths of each company: PMC’s extensive knowledge of...Continue Reading
Later this year, America will have a new President. Who that will be is still to be determined and that lack of clarity isn’t good for the markets. Presidents who are in the final year of a second term are also often less predictable than they are in previous years. Markets don’t react as much in the final year of a president’s first term as incumbents are many times reelected. As 2017 begins, investors won’t have to guess who will be in power, however, a president’s first year in office...Continue Reading
For Immediate Release: ROCHESTER, NY- June 7, 2016– On Sunday, Rochester native Dominic Bozzelli secured his first Web.com Tour victory at the Corales Puntacana Resort and Club Championship. Bozzelli came in 24-under-par at the event which was held May 30 – June 5. This was a four-stroke victory over Roberto Diaz, Sam Ryder and Blake Adams. The win brings his rank to #6 on The 25 list. The top 25 money winners at the end of the season are automatically awarded full playing privileges on the PGA Tour in 2017....Continue Reading
There is no question that New England’s energy infrastructure is clearly constrained, lacking resources that are both reliable and cost competitive. The region has limited local natural resources and energy must be transported long distances. With the increasing amount of variable generation such as wind and solar coming online, as well as the retirement of older coal and oil-fired units, the importance of natural gas as a reliability factor will likely continue to rise. These fast-responding units are a necessity in order to balance the other somewhat unreliable systems. This...Continue Reading
Over the past few months, the natural gas market has seen high production levels and storage at a record level. Couple this with the non-existent winter thus far and we are currently in a period of natural gas and electric prices as low as we’ve seen over the past 10-15 years. With a strong El Nino predicted, a milder winter is anticipated to continue. However, as we have seen in years past, Mother Nature can surprise us at any time! When evaluating purchasing strategies for our clients, one of the...Continue Reading
Power Management was honored to be recognized last Wednesday as one of the Rochester Top 100 companies. The Rochester Business Alliance and KPMG, LLP hosted the 29th Annual event at the Joseph A. Floreano Rochester Riverside Convention Center. Ranking 44th on the list, Power Management was proud to be among other fellow recipients on the Rochester Top 100 list which ranks the fastest-growing privately held companies in the nine-county upstate New York region. The awards intend to recognize both large and small privately owned companies that have and will continue to have...Continue Reading
Earlier this week, the American Council for an Energy-Efficient Economy (ACEEE) released its ninth edition of the State Energy Efficiency Scorecard. This comprehensive analysis is an annual benchmark which outlines the efforts to support energy efficiency of all 50 U.S. states and the District of Columbia. The report ranks states on their policy and program initiatives that improve energy efficiency in homes, businesses, industries, and transportation systems. The scorecard evaluates states based on six areas including: utility and public benefits, transportation, building energy codes and compliance, combined heat and power...Continue Reading
Rochester Gas and Electric (RG&E) recently implemented a new charge for utility customers in their service area. Effective September 1, 2015, this charge called the Reliability Support Services Surcharge (RSSS) will impact the delivery portion of a customer’s electric bill. NYSEG which serves many customers throughout New York State also issued a similar charge back in the spring of 2013. The need for this new charge stems from the occurrence of a number of power generation sources which have, or are expected to, come offline throughout the Northeast. RG&E has continued to...Continue Reading
There is a regulatory change currently underway for those in the PJM region that will affect the capacity market beginning in June 2016. This market reform is called Capacity Performance, and intended to strengthen reliability of the region’s power supply. Capacity markets are designed to ensure enough supply is available to meet demand during peak summer hours and severe winter weather. The new program will result in higher capacity prices; however customers will benefit from fewer expected outages and price spikes. In PJM, capacity prices are established through an auction three...Continue Reading
Over the next few days there is a good chance that we may set the peak energy demand for the year due to the expectation of high temperatures. If possible, we are recommending that customers with interval meters reduce their electricity use, especially during the hours of 3 p.m. to 6 p.m. on Wednesday and Thursday in NYISO, ISO-NE, and PJM. Peak usage is set during the highest demand hour of the year in NY and NE, and the average of the five highest days in PJM. This determines the...Continue Reading
Solar, wind, and geothermal are all sources of renewable energy that are frequently talked about. But here’s something you might not hear about all the time- wave power. In addition to surfers and tourists being drawn to the waves in Hawaii, waves are now being tested as a source of electricity through a new Hawaii Wave Power Project. As 70% of the earth’s surface is covered in water, researchers are assessing this relatively untapped source of clean, renewable energy that the oceans could offer. Wave length, height, speed, and water density...Continue Reading
In past blog posts, we’ve touched on the definitions for and impacts of both capacity and RECs on the price of electric. Both components which help to make up the overall price of energy, have increased to a point where they now account for a substantial portion of the total cost. Over the past few months in the New England region specifically, we have seen an increase in the percentage that RECs and capacity contribute to the overall energy price. As you can see from the graphs below, in a six month period from...Continue Reading
A study conducted by Deloitte in 2012 found, “American businesses have become increasingly focused on energy consumption and its impact on their bottom-lines…more businesses recognize energy management efforts are essential to staying competitive from both a financial and a corporate image perspective.” With a number of competitive energy options today, energy management involves more than just getting the best “price”, and can also be coined with profitability if managed correctly. Implementing a well thought out energy strategy may include taking a proactive approach to monitoring the market for times that may be optimal...Continue Reading
On Tuesday April 14th, Power Management was invited to attend an awards ceremony hosted by National Grid recognizing organizations that have provided outstanding energy savings and service to their customers in 2014. Power Management received the Champion Award, which honors the Top Energy Solutions Partner in the region. Our team of energy experts saved our customers in the National Grid Western NY Region over 1.3 million kWh last year. Our achievement can be credited to Power Management’s lighting specialists who design a comprehensive solution for customers, outlining the projected annual...Continue Reading
One element that helps to determine electric pricing is a facility’s load profile. Utilities are required to have enough energy and equipment available to meet peak demand levels and thus, electricity rates are partially determined by peak demand. For this reason, a graphical representation of a facility’s energy usage over a period of time is evaluated. Load profiles are used to determine how efficiently a business uses their energy. Load profiles are unique to each facility and show the variability in a customers demand. From a cost perspective, the higher...Continue Reading
As an extension of the BuildSmart NY initiative, the cities of Albany, Buffalo, Rochester, Syracuse and Yonkers are among those competing for $20 million in funding for new energy projects. Over the past year, each of these cities in conjunction with the state, have developed individual energy plans to address ways in which they will enhance the overall quality of life through a cleaner environment. In managing these efforts they will reduce energy consumption, strengthen their cities energy infrastructure, and drive investment in clean energy and economic development. The New York Power Authority will...Continue Reading
As we mentioned in this week’s Energy News Flash the price of electricity on the Day Ahead Market has risen greatly as we continue to experience the coldest temperatures of the season thus far. Last week we saw Day Ahead electricity prices in the Northeast rise above $200 MWH. We did not see January prices rise as high as last year; however, February looks like it may be a different story as more bitter cold temperatures are forecasted and the Day Ahead Markets are awake and reacting. For those of you on...Continue Reading
