Heat Treat Industry News
June 13, 2008
Current Status of Energy Markets
Both electricity and natural gas prices will continue to show upward trends through March 2009. Natural gas prices for July 2008 – March 2009 are solidly in the $11-$12 range. Prices drop in April 2009 to the $10.50 range, and stay at this lower level for two years. Electricity prices closely track natural gas prices and show the same price scenarios. APPI’s team of energy experts provide “real time” access to market information and prices from scores of competitive electricity and natural gas suppliers, all at no extra cost to clients. The following are updates for various state markets:
Illinois
New tariff rates and increased capacity charges impact all commercial customers. APPI consultants can provide detailed information on competitive suppliers and electricity contract products. An APPI consultant can help you decide whether a fixed-price or index contract meets your business’s needs.
Maryland
APPI announced the APPI Independent Maryland Electricity (“AIME”) program in early May. AIME is an exclusive offer structured and managed by APPI to provide association members in Maryland an unique energy supply contract at the best possible price. To do this, APPI worked with a supplier to purchase a block of wholesale electricity at a price below current Maryland tariff rates. Contracts for this electricity are now available – however, only a limited amount of electricity is available. Maryland members should contact APPI immediately to learn more about this opportunity.
New York and Massachusetts
If you have business locations in New York and Massachusetts you may be able to decrease electricity costs and remove the threat of future electricity price increases. With Reliant Energy Solutions recently entering the New York electricity market, greater competition will result in increased opportunities for New York members. Contact APPI for more details.
Texas
ERCOT recently announced its decision to push back its launch of its Nodal Market Design. APPI consultants are monitoring the market for developments and informing customers of important changes. For members in Texas, if your electricity contract is expiring within the next 12 months, now is the time to explore competitive supply options and learn about changing costs. Protect your business, find current savings, and secure budget-certainty by contacting APPI today.
Washington D.C.
PEPCO electricity tariffs changed in June 2008. Contact APPI for more information.
How Do Hurricanes Affect Energy Prices?
Hurricanes impact electricity and natural gas prices by disrupting supply and increasing prices. In 2005 the massive hurricanes, Katrina and Rita, caused shut-downs of natural gas production facilities and refining operations in Texas and Louisiana. More than 100 platforms in the Gulf of Mexico were destroyed and another 50 experienced extensive damage. For the 2008 Hurricane season, which officially starts June 1st, the National Oceanic and Atmospheric Administration is predicting a 90% chance of a near normal or above normal hurricane season for the Atlantic Basin and Gulf of Mexico.
To have APPI give you a free energy audit, please contact:
Heidi Bishop
(800) 520-6685 phone
(410) 749-8769 fax
hbishop@appienergy.com
www.appienergy.com
Provided by Affiliated Power Purchasers International - MTI's Endorsed Energy Supplier
For more information on our services, please contact us via e-mail
Robert Gutierrez - RGutierrez@HoustonHeatTreat.com
Mark Tate - Sales or Technical assistance - MTate@HoustonHeattreat.com
or call us at 281-590-9600.
