Picking an energy retail supplier is not as easy as it used to be when your local utility was your only choice. Nowadays the number of competitive electricity retail providers has grown to approximately 200 representing an unprecedented choice for customers in terms of suppliers, products and services. You’re probably asking yourself why switch to a retail energy supplier? What should you ask potential retail energy suppliers? Decisions, decisions.
As mentioned in a previous blog post about the effectiveness of the competitive electricity model, competitive retail electricity account growth has increased for residential by 518% and non-residential by 463%. However, only about one-third of U.S. customers are eligible to choose their electricity supplier.
Please visit the Direct Energy Business online customer education center, Energy Insights, to view my Weekly Energy Market Update video for May 13, 2013. Receive weekly updates that are sent right to your email inbox: click here to subscribe.
After more than 10 years of competitive energy market implementation throughout the country, we at Direct Energy are optimistic about developing a successful competitive energy market in Arizona to serve retail electric customers – particularly residential and small business customers. Recently, our Government & Regulatory Affairs team submitted a Certificate of Convenience and Necessity (CC&N) to the Arizona Corporation Commission (ACC) to serve retail electric customers in the state. The ultimate goal is to allow more consumers in the state to reap the full benefits of a competitive retail market structure, which may include cost savings.
As you may have heard, we previously expanded our Call Center in Tempe and are currently in contact with a vendor to establish another significant Call Center in Tucson. We were lucky to be a part of the AG-1 pilot lottery system and now Direct Energy Business is serving loads for two large retailers throughout Arizona.
It’s that time of the year in Texas that everyone loves (or dreads): summer time! Hello grilling, swimming and running your air conditioner. Simultaneously, it’s also the time when your electricity bill skyrockets as you attempt to keep your home or business cool.
Two summers ago, many Texans experienced sticker shock as the state dealt with one of the hottest summers on record and in turn, electricity prices skyrocketed. The heat was unbearable and was made worse by the lack of rain. This year could be a repeat but only time will tell. The risks due to a hot summer are greater this year because the state’s drought situation has worsened over the past six months. Last year we didn’t experience that as the state saw a significant amount of rain specifically in the eastern part of the state which kept temperatures down and the ground moist which helped cap the radiation heating throughout the hottest parts of the daytime. It’s a good time to think about what you can do to protect yourself from the possible upcoming energy price spikes. Read more for some tips.
Please note there will not be a video for the Weekly Energy Market Update for the week of May 6, 2013. Receive weekly updates that are sent right to your email inbox: click here to subscribe.
The following is a summary of last week’s market activity and the market outlook:
- Natural gas prices fell significantly this week, amidst significant volatility. NYMEX futures rallied on Monday, but then fell by 20 cents on Thursday — the biggest decline in almost two years. The drop was caused by a very bearish natural gas storage report and forecasts for moderate weather across much of the U.S.
- The EIA reported a storage injection of 43 Bcf for the week ending April 26. Current domestic storage inventories are now at 1,777 Bcf, which is 795 Bcf(30.9%) below 2012 and 118 Bcf (6.2%) below the 5-year average for this date.
- According to Baker Hughes, U.S. natural gas rig counts fell by 12 rigs last week to 354, which is 286 rigs (41.2%) below a year ago. Horizontal rigs increased by eight and are now 49 rigs (4.2%) below a year ago.