August 30, 2010
The New York Mercantile Exchange (NYMEX) month-end settlement price for August was $3.651 per Mcf, down from $4.774 at the end of July. This means that Dominion East Ohio’s Standard Choice Offer (SCO) rate for residential customers will decrease from $5.974 per Mcf for August 16 to September 15 to $4.851 per Mcf for September 16 through October 15. For more information, see John Funk’s article in the Plain Dealer: Natural gas prices hit lowest point in 11 months
In John Funk’s conclusion, he states:
“For now, at least, the situation means that consumers should consider staying with a monthly variable price rather than sign a contract for a long-term, fixed price from an independent gas supplier.”
We agree with John Funk. For Dominion East Ohio customers, the lowest 12-month fixed price shown on the PUCO’s Apples-to-Apples website is $6.73, offered by Constellation NewEnergy. The other marketers have prices between $6.99 and $8.99 for 12 to 60 months.
The NYMEX 12-month strip (the average price of futures contracts for the next 12 months) on August 27th was $4.27. It hasn’t been this low since December 2002. At that time, marketers were offering prices well under $5 per Mcf. Unless we see prices drop below $5.50 for a 12-month fixed contract, we recommend staying where you are.
On Wednesday, August 25th, the Public Utilities Commission of Ohio (PUCO) approved, with modifications, a FirstEnergy rate proposal for the 3-year period beginning on June 1, 2011. When the PUCO modifies a proposed electric security plan (ESP), the utility has the right to withdraw its proposal. We will have to wait and see what FirstEnergy decides to do. In addition, any parties who oppose the PUCO ruling have until September 24th to file an application for rehearing. Therefore, the plan is not yet final.
The rate plan calls for a series of auctions to set the default generation prices. The PUCO ruling states that the first auction should be held in October.
For more information, see John Funk’s article in the Plain Dealer: PUCO approves rate plan for FirstEnergy
August 12, 2010
We recommend that you attend:
- 5th Annual Northern Ohio Energy Management Conference
- Wednesday, September 29, 2010
- John S. Knight Convention Center, Akron, Ohio
For more information, see www.MECseminars.com.
We are working with a McDonald’s restaurant in Tallmadge, Ohio to install LED lighting. The results of testing from the first phase are shown in the presentation called LED Lighting Project on our Presentations & Reports page.
August 10, 2010
Currently, Illuminating Company customers are paying for past construction costs for generation plants under a rider called the Regulatory Transition Charge. This rider is scheduled to expire on December 31, 2010. Thus, for purposes of budgeting for 2011, you may assume that your electric costs will decrease by the amounts shown below, based upon your rate schedule.
- Residential: 1.1849 cents per kilowatt hour (kWh)
- Secondary: 1.1448 cents per kWh
- Primary: 1.1070 cents per kWh
- Subtransmission: 1.1026 cents per kWh
- Transmission: 0.5205 cents per kWh
These decreases will be offset by increases in other Illuminating Company riders for certain rate schedules:
- For all customers, a new Deferred Fuel Cost Recovery Rider will take effect on January 1, 2011 at a rate of 0.0492 cents per kWh. This would be $0.49 per 1,000 kWh.
- For residential customers, the Residential Deferred Distribution Cost Recovery Rider will increase by 0.7086 cents for each of the first 500 kWh, through May 31, 2011. This rider is zero during the summer months of June, July and August. The maximum increase is $3.54 per month for the first five months of 2011.
- For Secondary Service customers, the Non-Residential Deferred Distribution Cost Recovery Rider will increase by 1.1448 cents per kWh, through May 31, 2011. This rider is zero during the summer months of June, July and August. This would be $11.45 per 1,000 kWh for the first five months of 2011, and would exactly offset the reduction in the transition charge.
These are the changes that are known at this time; there could be others. Note also that these rates are effective through May 31, 2011. FirstEnergy has filed a new rate plan to be effective on June 1, 2011, but the Public Utilities Commission of Ohio has not yet ruled on the filing.
July 30, 2010
The New York Mercantile Exchange (NYMEX) month-end settlement price for July was $4.774 per MCF, up from $4.717 at the end of June. This means that Dominion East Ohio’s Standard Choice Offer (SCO) rate will increase from $5.917 per MCF for July 16 through August 15 to $5.974 per MCF for August 16 through September 15. This is the default price for customers who decide not to buy their natural gas from an alternative supplier. Watch the Public Utility Commission of Ohio’s website for information on the prices being offer by alternative suppliers.
July 24, 2010
A few months ago, FirstEnergy filed with the Public Utilities Commission of Ohio (PUCO) a proposed rate plan for the 3-year period beginning on June 1, 2011. While the PUCO has not yet made a decision on this proposal, several parties have agreed to support the plan. Most recently, the Northeast Ohio Public Energy Council (NOPEC) agreed to drop its opposition to the plan in exchange for some concessions from FirstEnergy. The Office of Consumer’s Counsel is the only party actively opposed.
As John Funk reported in today’s Plain Dealer (FirstEnergy deal paves way for approval of new rates), the PUCO may approve the plan by mid-August. FirstEnergy wants to hold an auction in October to set generation prices for the period covered by this new rate plan, June 1, 2011 through May 31, 2014. This will allow consumers who wish to contract with alternative suppliers for their generation services to know the utility’s standard price, or “price to compare”.
July 14, 2010
Some mercantile customers of FirstEnergy in Ohio can avoid paying a new charge (called the DSE2 charge) by putting energy efficiency programs in place. The proposed rates for this charge have not yet been approved by the Public Utilities Commission of Ohio (PUCO). The charge will start small but grow over time as the energy efficiency mandates imposed on the utilities by a 2008 state law increase in each of the next 15 years. Contact us if you want to know more about applying for exemption from this charge.
Mike Brakey was quoted in a June 21st Crain’s Cleveland Business article by Chuck Soder regarding this opportunity:
Mike Brakey, principal of energy consulting firm Brakey Energy of Shaker Heights, expects the fee to become a sizable part of customers’ energy bills.
“It could vastly drive up costs for everyone,” Mr. Brakey said.
July 7, 2010
The New York Mercantile Exchange (NYMEX) month-end settlement price for June was $4.717 per 1,000 cubic feet (MCF), up from $4.155 at the end of May. Therefore, Dominion East Ohio’s Standard Choice Offer (SCO) rate will increase from $5.35 to $5.92 per MCF for July 16th through August 15th. For more information, see John Funk’s recent article in the Plain Dealer: Natural gas prices rising
June 15, 2010
You can reduce your water heating costs by simply lowering the thermostat setting on your water heater. A 60ºF reduction in water temperature can save over 50% in energy costs.
Most households only require 120ºF to 125ºF water for dish-washing, laundry and showering. These temperatures also destroy any bacteria within the water. Water heated at 130ºF to 180ºF poses a safety hazard—scalding. Every gallon of water heated to 180ºF must be mixed with 0.86 gallons of water at 50ºF to achieve a mixed temperature of 110ºF. Why heat water up only to dilute it with cold water later?
For more information, see our report: Saving Energy on Water Heating
