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Energy Insider Blog

NG Spot Prices Reach Record Levels and Boost Power Prices During January 2014

Posted by Jennifer Chang on Jan 24, 2014 5:17:00 PM

Two ruthless surges of arctic air, east of the Rockies, have taken over the eastern half of the country this month. The latest forecasts suggest that this weather pattern will continue to linger through the end of the month. Sub-zero temperatures are expected in the upper Midwest cities and the great lakes, including Chicago, Minneapolis and Detroit and possible below zero temperatures as far south as the Ohio River. Factoring in wind chill, temperatures are expected to be 20 or 30 degrees below zero. This weekend a couple of Canadian clippers will be followed by another arctic surge through mid-next week with conditions that could rival those from January 6, 2014. A Canadian clipper (a.k.a Alberta clipper) is a storm system during the winter months that originates from the Canadian Province of Alberta (or there close by). The term "clipper" originates from the quick speeds of clipper sailing ships.  Thus, an Alberta clipper is a quick-moving winter storm system originating from Alberta, Canada. A clipper will usually bring smaller bursts of snow (generally 1-3 inches) along with colder temperatures and often times gusty winds (The National Oceanic and Atmospheric Administration).

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Topics: energy risk management, Acclaim Energy Advisors, risk management, energy, Energy Solutions, energy procurement, weather outlook, reliable energy, demand response, energy regulations, energy reliability, energy savings, energy costs, power generation, Weekly Energy Insights, natural gas, Event, energy management, energy management consultants, energy price spikes, Price Spike, energy blog, energy supply, Winter Weather, U.S. energy, Peak Demand, mid-atlantic, new england, NG

Natural Gas Market Supplies Tighten On Higher Than Normal Draws- Are You Protected Against Price Spikes?

Posted by Jennifer Chang on Jan 21, 2014 10:18:00 AM

So far, the 2013-2014 winter has been exceptionally cold across the eastern half of the U.S. Arctic outbreaks and the bitter cold winds from the Polar Vortex have spilled across major natural gas consuming regions. Massive draws from inventory have been needed to meet surging demand for heating from the residential, commercial and electric power sectors. This season has been characterized by withdrawals that have been much larger than average.

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Topics: Heating Season\, Polar Vortex, energy risk management, energy sourcing, Acclaim Energy Advisors, energy management consulting, risk management, energy, energy procurement, demand response, energy regulations, energy reliability, energy costs, power generation, Weekly Energy Insights, natural gas, energy management, energy management consultants, energy price spikes, Price Spike, energy blog, Natural Gas Supply, energy supply, U.S. energy, capacity markets, refueling season

More Nuclear Power Plants to Refuel in 2014 Compared to 2013: How Could This Affect Natural Gas Prices?

Posted by Jennifer Chang on Jan 17, 2014 1:34:00 PM

Platts recently reported that the 58 U.S. nuclear power plants totaling almost 60,000MW are expected to refuel in 2014, compared to 54 units totaling over 55,000MW in 2013. The analysis is based on historical refueling data from the US Nuclear Regulatory Commission.

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Topics: energy risk management, Acclaim Energy Advisors, energy management consulting, energy procurement, reliable energy, energy regulations, energy reliability, energy costs, power generation, Weekly Energy Insights, energy management, energy price spikes, Price Spike, power outages, U.S. energy, capacity markets, nuclear units, power plants, refueling season

Arctic Blast Shuts Down 20% of PJM's Installed Capacity-Conservation, Demand Response and Power Imports Save the Day

Posted by Jennifer Chang on Jan 12, 2014 10:49:00 AM

PJM is the largest regional transmission organization (RTO) in the U.S. and coordinates wholesale operations in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

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Topics: ERCOT, energy risk management, Acclaim Energy Advisors, energy management consulting, risk management, energy, Energy Solutions, energy procurement, weather outlook, reliable energy, energy regulations, energy reliability, PJM, energy savings, energy costs, Weekly Energy Insights, energy management, energy price spikes, energy blog, power outages, Winter Weather, U.S. energy, load generators, RTO

ERCOT Sets New Winter Peak Demand- Real Time Prices Hit $5,000/MWh Cap on January 6, 2014

Posted by Jennifer Chang on Jan 8, 2014 12:59:00 PM

What Triggered the January 6, 2014 Energy Emergency Event?

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Topics: Heat Rate, REP, ERCOT, Acclaim Energy Advisors, energy management consulting, risk management, energy, Energy Solutions, energy procurement, weather outlook, energy regulations, energy reliability, energy savings, energy costs, Weekly Energy Insights, Event, energy management, energy management consultants, energy price spikes, Price Spike, Winter Weather, U.S. energy, Peak Demand, Emergency

The Negawatts Evolution: The Maturation of Demand Response

Posted by Jennifer Chang on Dec 9, 2013 12:06:00 PM

Several decades ago the term “negawatt”  gained notoriety; however, as deregulated markets have developed and with the rise of Demand Response (DR) programs, the concept of reducing energy spend through the deployment of more energy efficient technologies has evolved into something larger. The negawatt concept has expanded from its foundation with the growth in utility and Independent System Operator (ISO) DR programs. Another important, and more recent, development has been the growth of economic price response, which is the ability to add capacity to the grid or shed load when real-time market conditions create financial incentives. The combination of flexible distributed generation, access to real-time price data, and ”structural incentives” in deregulated markets have enabled end-users to profit from these programs andactivities. In ERCOT for example, these incentives include price scarcity mechanisms (Operating Reserve Demand Curve) and system-wide offer caps that will increase to $9,000/MWh on June 1, 2015. Aside from generating revenues for end-users, these measures will contribute to improve balance between supply and demand, and support overall grid reliability.

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Topics: Negawatt, ERCOT, energy risk management, Acclaim Energy Advisors, energy management consulting, energy, Energy Solutions, energy procurement, demand response, energy regulations, energy savings, energy costs, Weekly Energy Insights, energy management, dynamic load optimization 365, DLO 365, curtailment

Liquified Natural Gas Exports: What This Means for U.S. Consumers

Posted by Jennifer Chang on Nov 22, 2013 11:36:00 AM

The rise of fracking has shifted the U.S. natural gas market at fundamental levels that are not yet fully understood or appreciated. In fact, there is a strong argument to be made that as fracking and other recovery technologies continue to improve, the U.S. will become a major energy provider. By exporting copious amounts of liquefied natural gas (LNG), the U.S. will achieve greater energy independence by cutting back on imports of foreign crude oil products. A massive shift in the global energy markets is neither that far-fetched nor far off and will likely take place over the next decade. As discussed in greater detail below, natural gas has the potential to become a globally traded commodity like crude oil.

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Topics: energy risk management, Acclaim Energy Advisors, energy, Energy Solutions, energy procurement, energy regulations, energy reliability, energy savings, Weekly Energy Insights, energy management, exports

The Future of Power Generation in the U.S.

Posted by Jennifer Chang on Nov 18, 2013 10:26:00 AM

For years, coal has been the dominant fuel source for power generation in the U.S.. However, recent changes in the market place, including tighter emissions restrictions imposed by the Environmental Protection Agency (EPA) and low natural gas prices from abundant shale gas suppliers, threaten coal’s dominance as the leading fuel source for generation. An analysis conducted by the Department of Energy (DOE) was published in August and predicted that between 35 and 60 gigawatts of coal-fired electricity generation in the eastern half of the country will be retired within the next five years. Therefore, new generation, transmission investments and reliability must run (RMR) contracts will be needed to maintain grid reliability. Natural gas fired generation will most likely fill the bulk of the gap left by the coal retirements. The impact of retirements and the higher operation costs of the remaining coal plants will trigger an increase in prices. This effect will be magnified in regions that are more dependent on coal fired generation, like the Midwest.

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Topics: coal, energy risk management, Acclaim Energy Advisors, energy, Energy Solutions, energy procurement, energy regulations, Weekly Energy Insights, energy management, U.S. energy

The Impact of the Marcellus Shale Boom on Energy Risk Management

Posted by Dennis Vegas on Aug 19, 2013 1:05:00 PM

The United States faces a new future with a real possibility of energy independence rather than some pie in the sky notion predicated on unproven technologies.  One of the key drivers behind this new opportunity for energy independence is the emergence of shale gas, particularly in the Marcellus Shale in Pennsylvania.  While there are other areas of the country with larger shale deposits, the Marcellus holds particular benefits because of its proximity to the major population centers along the East Coast.  The boom in natural gas and other petroleum rich products along the East Coast has created opportunities for energy management consultants to manage their clients overall energy expenditures in new ways.

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Topics: energy risk management, energy management consulting, energy procurement, energy management

Will Market Consolidation Hurt Retail Energy Procurement

Posted by Dennis Vegas on Aug 6, 2013 5:43:00 PM

On July 30, 2013, Direct Energy Business Services (Direct) announced that it was acquiring Hess Energy Marketing, a long-time powerhouse of electricity and natural gas supply in the Northeast.  According to published reports, Direct paid over $730 million dollars for Hess, not including an additional $300 million in working capital.  This acquisition did not shock the industry as Hess had been trying to sell its energy marketing business to focus on its exploration and production activities. This highlights an emerging trend in the energy markets that could have meaningful implications for end users in the energy industry—namely a move towards consolidation.

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Topics: energy risk management, energy procurement, energy management

   

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