Key Market Drivers
- Natural gas well-head prices dropped $.20/MMBTU the past month.
- Electric wholesale prices have stayed flat the past month while natural gas dropped
- This dip in wholesale natural gas prices has been expected. Prices will likely rise at the first sign of cold weather
- Winter might arrive late, but is expected to be colder than normal when it does
Winter is arriving late, which is giving wholesale gas prices a final opportunity to dip as some have expected all summer. While wholesale electric and gas prices run in close parallel most of the time over the past couple of weeks wholesale electric prices have stay steady and natural gas prices have dropped $.20 from last month’s settlement prices. When cold temperatures finally arrive natural gas will likely rise above current levels. Those needing to renew natural gas contracts over the next 12 months might want to take this opportunity to renew at attractive prices.
Some customers have asked “why?”. If this was one of the hottest summers in history and electric usage was at an all-time high why did PJM not call a Demand Response critical event during the heatwave? While new wind and solar power additions on the grid are part of the answer the biggest reason is “peak shaving”. Peak Load Management has become not only a way for the PJM grid to avoid a critical event, but customers participating are reducing their electric costs in a substantial way. We have quite a few customers on the peak shaving plan. This summer was a busy time as we worked closely to help our customer to reduce usage during the 5 peak hours on the grid.
- We are in the Demand Response sign up period for the June 2017 – May 2018 capacity year. Please let us know if you want more information
- Small commercial and residential customers can shop for great electric prices at www.rd-energy.com
RD Energy is Certified by the PUCO as a natural gas and power broker. We believe in creating a strategic energy purchasing strategy. Timely buying, Demand Response and Peak Load Management are key tools available to buyers. Given the opportunity RD Energy most often proves that more can be done to cut energy costs both for the short and long-term.
RD Energy does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein. RD Energy shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact.