Going UP Right!
The Electric industry continues to be volatile. Capacity limitation in AEP Ohio, DP&L, Duke Ohio, and FirstEnergy Corp will unfortunately negatively affect your electric rates over the next couple of years by increasing the generation capacity charges. These capacity costs, however, only represent part of the problem. The other main component baked into your generation costs is the actual energy component itself, which has been rising exponentially ever since the polar vortex that hit the majority of the country back in January and February. The continuation of coal plants being closed doesn’t help matters. The bottom line is that while capacity has been the driving force in these increased prices, the energy component also has been steadily increasing, both in the interim and long-term.
Natural gas prices have fallen over the past month as consistently warmer weather has finally pushed aside colder winter like temperatures. It almost seems as if winter ended, summer began and that we’ve completely skipped spring. As such, June gas settled earlier a few weeks ago at $4.619, approximately $0.15 lower than May’s settlement of $4.765. The question now becomes, just how hot will this summer be? A warm but mild summer will help keep prices from moving too high and maybe even influence the market to move down. However, an overly hot summer will create extra demand for natural gas and likely push prices higher towards $5.00.
It’s more important than ever to have CES and the Defiance Area Chamber review your utility bills to ensure the best pricing for your energy costs. Just give us a call @ 419-782-7946