Newsletter Feb 2014


Welcome to Premier Power Solutions, LLC's bi-monthly newsletter designed to provide an overview and awareness to our customers of recent and relevant information and issues regarding competitive energy markets, regulatory and legislative matters, and customer choice options. 

"Our customers benefit from our experience and the resources we provide for controlling their energy spend coupled with a customized and localized one-on-one approach."

Thank you!


What We Offer

Established in 2005, Premier Power Solutions, LLC is one of the nation's 15 largest energy brokerage and consulting firms saving its customers as much money as possible on their energy costs. We advise large corporations as well as operators of single locations on trends affecting the energy markets and assist them in minimizing the level and volatility of their energy expenditures, in addition to helping them meet their sustainability goals.  Our footprint covers the PA, MD and OH territories. 


Cold Temps - Higher Bills

Cold weather in PJM (Pennsylvania-New Jersey-Maryland Interconnection) has set several record winter peaks between January 6 - January 8.  Cold temps and high demand have driven the wholesale price of electricity higher than expected and it will translate to higher energy bills.  In addition, the increase in natural gas prices is having a large impact on short term electricity pricing over the balance of 2014.  However, 2016 & 2017 are trading lower than short term which is unusual in PJM.  In addition, high capacity rates in June 2014 thru May 2016 (as shown below) allow for reduced 3 year and longer term contract pricing.  

The Pennsylvania Public Utility Commission (PUC) is reminding customers using competitive suppliers in variable contracts to review their contracts as the cold temps have increased variable rate contracts dramatically.  The PUC also is continuing its ongoing efforts to empower customers to more quickly change generation suppliers when they are charged unacceptably high rates.  It is important for consumers on variable rates to carefully review the terms and conditions of their contracts to determine if they are at risk for large rate increases at any given time.  

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What is Capacity?


Both delivery and energy along with their 15-30 separate cost components determine your final energy bill.  The delivery portion is passed on to the consumer, but the energy portion may be flexible based on whether or not a customer chooses to shop.  One of the components in which we see rising and volatile costs in PJM over the next 3 years, is the capacity component.  Capacity represents the need for adequate generating resources and ensures there is enough power available on the grid at all times (especially peak times), payments are made to generators for their ability to deliver power during critical peak events.  Prices are set in a series of annual auctions. 

All customers pay charges in addition to the raw price of energy.  Prices are set on a megawatt-day basis.  Below are the expected capacity rates based on recent auctions in PJM and OH.  We can help you manage your peak demand to help you lower these capacity associated costs.


Is Temperature Affecting the Forward Markets?

There have been recent spikes in natural gas and a colder than usual winter with recent weather events from above normal to much below normal extremes causing natural gas prices to range from $4.30 to $4.43 per MMBtu.  These spikes may spill over well into spring.  Forward natural gas prices remain around $4.40 per MMBtu, but could rise to $4.50 to $4.70 per MMBtu.

Solicitors and Scams

The Pennsylvania Public Utility Commission (PUC) cautions consumers of an email scam involving their energy bills and reminds consumers to be diligent when weighing offers from door-to-door and telephone solicitors.  Always have your Premier Power Solution's Account Manager confirm your contract details.  We will do our best to ensure that you are not subject to termination fees, hidden fees or hidden price components without your knowledge.  

Click here to view this press release in its entirety.