We’ve moved, renamed and re-launched our business blog. The blog, now titled Energy Management Today, can be found at http://www.business.directenergy.com/blog.
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Direct Energy Business blog: We’ve moved
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Author Archives: Direct Energy Business
Ohio coal power plant to close
(Blog post derived from The Columbus Dispatch)
“There was big energy news today that American Electric Power (AEP) plans to close a coal-fired power plant near Beverly, Ohio, that had been slated for conversion to run on natural gas. The Columbus-based utility said yesterday that Muskingum River Unit 5, with a capacity of 585 MWs, will stop operating in 2015. The company is taking that action at a time when wholesale electricity prices remain low, and Ohio’s power demand has been close to flat.”
Teresa Ringenbach, Senior Manager, Government & Regulatory Affairs, Direct Energy, comments: As coal-fired power plants age and new environmental rules are put into place, it is likely some plants will be shut down. However, just like any other industry where new technology replaces the old, new plants will be built if and when they are needed. In fact, many new plants are already approved and several new plants went online in PJM over the last few years. There are federal, state, and regional reliability protections for customers to ensure the lights stay on. Lastly, competitors such as Direct Energy have the capability to offer innovative products designed to allow customers the flexibility to save money even if market prices increase. Read the July 12 article from The Columbus Dispatch.
Our Energy Market Intelligence Team: Get to know Randy Burns
Direct Energy Business wants to take a quick moment to introduce the newest Market Intelligence Team member, Randy Burns.
Randy graduated from Pennsylvania State University with degrees in Finance and Economics. After graduation, he launched his career at Griffon Energy Capital, LLC, a hedge fund located in Austin, Texas, where he worked as a trading assistant on the Natural Gas and Power Desks. Randy moved back to his hometown of Pittsburgh in January 2009 to work as a consultant for Co-eXprise, a firm focused on procurement solutions. He utilized his wholesale market experience to specialize in the procurement of electricity for large commercial and industrial users.
Direct Energy names first-ever Pittsburgh Small Business Community Hero
Direct Energy and Pittsburgh Magazine honor Scott Pipitone, president and CEO of Pipitone Group, as the 2013 Pittsburgh Small Business Community Heroes awardee for his dedication to community investment and revitalization. Pipitone was chosen for his personal contributions as well as his Observatory Hill-based integrated marketing communications firm’s commitment to helping dozens of area non-profits advance their missions to benefit thousands of people.
During the past six years the company has provided pro-bono marketing services to the tune of more than $230,000 of in-kind contributions for organizations such as Strength & Courage: Exercises for Breast Cancer Survivors; the Northside/Northshore Chamber of Commerce; Ingomar Living Waters; and many others. These contributions don’t include his personal financial contributions and his fostering and facilitating of a spirit of giving back to the community in his 33 employees, who in turn, take that spirit into their own communities.
Can Texas ERCOT Keep the Energy Flowing this Summer?
This post was written by Read Comstock, Director, Government & Regulatory Affairs, Direct Energy Services, LLC
There has been much discussion by policymakers in Texas regarding reserve margins in ERCOT since the extreme weather of 2011 (extreme cold in February 2011 and extreme heat during summer of 2011) stressed the ERCOT grid. Why is there is so much discussion about ERCOT reserve margins? The quick answer is reliability. The public has an expectation that electricity will be available to power businesses in Texas’ growing economy, power air conditioners, power computers, etc.
One indicator as to whether or not ERCOT will have enough power to supply demand is the reserve margin forecast. The reserve margin forecast is a comparison of total forecasted supply in ERCOT to the forecasted power demand (forecasted supply – forecasted demand/forecasted demand = reserve margin). ERCOT’s current reliability target is ERCOT should only initiate rolling blackouts due to inadequate supply once every 10 years. This is referred to as a 1 in 10 year loss of load standard. Through study and analysis, ERCOT calculates the level of reserve margin that is needed to deliver the 1 in 10 year loss of load standard. The current reserve margin target to deliver the 1 in 10 year loss of load standard is 13.75%. Twice a year ERCOT releases a Report on Capacity, Demand, and Reserves (CDR Report) in its region that forecasts reserve margins for the next 10 years. The CDR Report issued in May 2013 forecasts a reserve margin of 13.8% in 2014 that declines in 2015 and beyond.