Newsletter Apr 2015

Happy Spring from all of us at Premier Power Solutions, LLC!  

 

To Our Customers:
This past winter has brought some of the harshest weather patterns we have seen in years. The winter began with pricing on the rise, followed by a decline in the months of December and January. Since then, natural gas prices have flattened out or have decreased, and electric prices have increased.    

April NYMEX natural gas futures closed at $2.697.  The 12-month strip has been trading between $2.70 and $2.95.  Oil prices continue to be volatile as the market sorts between excess supply and bearish economic indicators.  Oil prices are currently trading near $49/bbl.  Electricity prices for our geographic area are up about 0.5? per kWH over the past couple of months.  When you look at these three commodities, their price movements do not follow the expected movements. Generally, when one commodity falls in price, the others are flat or down as well.  This has not been the case this spring.  

One thing that we expect is that the market will be volatile over the next few months, with some commodity prices rising and others falling.  There seems to be some confusion in the market as to which direction prices should go.  We do believe that there will be buying opportunities over the coming weeks and months, and we plan to help you take advantage of those opportunities as they present themselves.

Thank you for being a Premier Power customer.  We appreciate your business!

Happy Spring to All, 

The Premier Power Solutions Team

Lee McCracken, President

 

Electricity Headlines

  • March 1 - May 31 quarterly PTCs (Price to Compare) have been set for various utility companies, with most rates increasing in the commercial and industrial sectors. This June, utility rates across the board, are estimated to continue to climb due to the increased capacity component in each customer rate class.  See current PTC rate chart below.  Most of these prices change quarterly, making it very volatile to remain on utility default rates.

Utility 

State

Rate Class

Current PTC

Duquesne Light

PA

GM less than 25 kW

0.0746

Duquesne Light

PA

GM > 25 kW

0.0824

Duquesne Light

PA

GMH less than 25 kW

0.0745

Duquesne Light

PA

GMH > 25 kW

0.0787

Duquesne Light

PA

GS (non demand)

0.0727

Duquesne Light

PA

GL

Hourly

Duquesne Light

PA

GLH

Hourly

Penn Power

PA

GS/GSM

0.0718

MetEd

PA

GS/GSM

0.0799

Penelec

PA

GS/GSM/H

0.0798

West Penn Power

PA

20, 22, 24, 30S

0.0667

West Penn Power

PA

30L

Hourly

PPL 

PA

BL, GS1 G1D, GS3-Small

0.1012

Peco

PA

GS Small

0.0890

Peco

PA

GS Med

0.0921

Peco

PA

GS Large

Hourly

CEI

OH

GS winter rate

0.0708

CEI

OH

GP winter rate

0.0656

CEI

OH

GSU winter rate

0.0637

CEI

OH

GT winter rate

0.0622

Ohio Edison

OH

GS winter rate

0.0703

Ohio Edison

OH

GP winter rate

0.0652

Ohio Edison

OH

GSU winter rate

0.0622

Ohio Edison

OH

GT winter rate

0.0610

Toledo Edison 

OH

GS winter rate

0.0798

Toledo Edison 

OH

GP winter rate

0.0665

Toledo Edison 

OH

GSU winter rate

0.0636

Toledo Edison 

OH

GT winter rate

0.0619

Potomac Edison 

MD

Standard offer

0.0660

BG&E

MD

Standard offer

0.0882

BG&E

MD

G

0.0841

BG&E

MD

GS

0.0817

BG&E

MD

SL

0.0724

Delmarva

MD

Standard offer

0.0870

Delmarva

MD

SGS-S

0.0866

Delmarva

MD

ORL

0.0736

Delmarva

MD

GS-SH

0.0887

Delmarva

MD

GS-WH

0.0892

PEPCO

MD

Standard offer

0.0847

 

 

  • As of December 15, 2014, the majority of customers in the PA service territories are able to take advantage of "accelerated switching" and switch to a different electric supplier, or back to default utility service, within as few as three business days once the utility has been notified.
  • As early as June 2015, and no later than September, you may see the Network Integration Transmission Service or (NITS) rate fees increase in your bills.  The NITS fees are a major component of transmission costs and have increased across the ATSI zone in PJM that covers Penn Power in Pennsylvania and the FirstEnergy owned Ohio Utilities.  PJM directs the building of new transmission upgrades, and allocates those costs to you on your energy bill.  These upgrades are required for either reliability, economic efficiency, or to meet operational performance criteria.   In Penn Power, this NITS charge is included in the supplier pricing, although some Pennsylvania providers have decided to pass through the NITS charges that are beyond those previously included within your electricity supply rate. It may show up as a specific line item on your electricity bill, while other suppliers may pass the charges through.  In Ohio, they are part of the distribution/regulation portion of your bill.  The charges vary by customer.  Industrial & commercial users can reduce these costs by reducing their peak contribution to load.  Customers without interval metering, which includes most residentials, may reduce their charges by less overall energy use.  
  • FirstEnergy Corp's PA subsidiaries are proposing to increase distribution rates, effective May 19, 2015. These subsidiaries are:  Penn Power, West Penn Power, Penelec and Met-Ed. The request to increase rates was suspended in October 2014.  A final decision must be made by May 3, 2015.  These charges make up 1/3 of your customer bill.  Read article published Oct 28, 2014.

   Company Name

   & Utility Code

Tariff Electric-

Pa. P.U.C. No.

          Increase

         (millions)

West Penn

111250

38 and 40

$ 59.9

4.4% overall increase

Penelec

110400

81

$ 91.3

6.6% overall increase

Penn Power

110450

36

$ 17

5.2% overall increase

Met-Ed

110300

52

$ 90

6.8% overall increase

 

 

 

 

Natural Gas Headlines
Winter is finally over.  We ended these harsh months with ample natural gas supply in storage.  As a result, we have been seeing natural gas prices decline over the past month.  With the lower prices, one would expect to see natural gas drilling slow down.  In fact, drilling has slowed down to a certain extent, but not nearly as much as some predicted it would.  With natural gas drilling still ongoing, we expect to see a slight downward movement in natural gas prices over the coming months.  With that said, prices are already at levels that make sense for most businesses to lock in for a longer-term contract.
If you don't have a contract in place for your natural gas supply, NOW is a great time to take a look at possible savings!!  Depending on utility, some customers may be able to see 30% PERCENT SAVINGS versus the utility's default rate.  Contact us today to see how we can help.

 

Be diligent when weighing offers from door-to-door and telephone solicitors
Let US check your gas and electric supply rates and contract details and know your options regarding shopping and switching suppliers.  Do not sign a contract or terminate a current contract without knowing the following: the terms, the price, whether it is fixed or variable and whether there are termination fees.   

  • Do NOT cancel a contract prior to confirming your current contract end term or conditions!
  • Be wary of telemarketers offering VARIABLE rate offers that may be a LOW INTRODUCTORY or "TOO GOOD TO BE TRUE" price!
  • Ask for price, terms and conditions, and understand how it COMPARES to your utility PTC or current contract offer!
  • Do NOT feel pressured to make a decision over the phone or immediately!

Call us if you have any concerns regarding solicitations.  Switching suppliers, and the termination fees and problems associated with a switch, can set you back more than the savings you thought you would incur, if not done properly.

The PaPuc recently launched a special search feature that allows users to search by company for formal complaints filed against regulated utilities and suppliers, or you can check the better business bureau website.  Always do your homework, OR LET US DO IT FOR YOU!

 

Our Services
We invite you to review our website for a   complete list of services we offer.   Let us help you understand how these changes can affect your business or home, and assist you in lowering your exposure and mitigating the impact of these escalating costs.  Please contact a Premier Power Solutions, LLC sales rep, or call 724.458-5600 (main office) for assistance.

 

Our footprint covers the PA, MD and OH territories.