Month: August, 2018
Winter rates begin to rebound.
The Bottom Line
As we mentioned last month, something had to give. A combination of hot weather and low storage amounts can’t result in low pricing forever. Now, in the last two weeks, pricing has finally ticked up. The January gas rate has increased from $2.96 to $3.17/mmbtu since 7/18. Opportunities to lock in year-to-year savings are still available, they will become more difficult to capture as the month progresses.
What to know about 2018
After the increase, wholesale natural gas prices are now just 6% lower than 2017 on average. Last month, that number was 8%. Above normal temperatures continue to cause increased demand for electric generation for air conditioning, which reduces the gas we have in storage. At this time, we strongly recommend all customers who use Natural Gas for heating to evaluate their replacement supply contracts and consider switching off volatile utility rates if they are served by the utility.
Why Act Now
As we close out summer and head towards winter, the lower amount of natural gas in storage is a clear signal that market volatility will occur as 2018 progresses. Prices have already begun to rise, and capturing savings now compared to your last contract or to the utility rates is a safe maneuver.
Temperature Probability Maps
August and September will continue to be hot, highlighted by the West Coast and Northeast. This summer may end as the hottest on record. An El Niño effect is forecasted for this winter, which may lower rates by creating milder temperatures. The orange/red in the maps below indicate heat increases from normal. Continued hot summer weather will cause upward pressure on pricing, while a mild winter can mean low demand and low prices.
Meet Pete Peterson, Chief Financial Officer.
What are some of the things you are excited about in your new role at Bright Power?
The entrepreneurial spirit of the people at Bright Power. Not only is everyone proud of the company’s growth to date, but they are excited to continue to grow and scale. Everyone has been welcoming, encouraging, and eager to help me do the things I’m here to do.
Bright Power has done a great job of becoming the organization it is today: sustainable and impactful. My expertise is in helping companies of this size get to the next level, and, only a few weeks in, I can say that we’re well on our way to get there.
Tell us about a project or accomplishment for which you’re proud.
I’ve been able to hit the ground running at Bright Power thanks to cross-departmental collaboration. Before Bright Power, I was with a company that grew from $30M to over $350M with global reach over the course of 15 years through 8 acquisitions and 3 startups. We ended up with a group of 15 small companies. That experience turned me into a small company expert.
What’s something people might not know about you?
I build wooden boats as a hobby. I started with one of my sons who is a clammer and needed a boat. I’ll take wood I find and turn it into something beautiful. Take a look at this canoe I built out of an old cedar deck. Now, I’m in the middle of making my three kids surfboards made out of a recycled redwood picnic table.
What are some trends that you are seeing in the industry that excite you?
At the beginning of the industry, there were the very green early adopters. But now, sustainability has become mainstream and widely accepted – it’s hard not to when it will save you money. The growth is almost endless.