The last few weeks have seen many utilities filing default supply rates for the upcoming winter, and rates are up substantially when compared to recent history. These rates are applicable for those currently receiving their supply of electricity or natural gas from their utility default or standard offer service. Thankfully these high default rates do not apply to CES clients that exercise their right to choose their own energy suppliers and decide when to lock their energy rates in the competitive marketplace. Our own Rich Silkman was recently interviewed to describe this trend in the Portland Press Herald.
While this article is specific to Maine electricity charges, there has been substantial news coverage of rising energy costs in other utilities and markets around the country.
As described in much of the press surrounding these increases, the rise is driven by the significant run up in energy commodity markets, particularly natural gas. Beyond being a primary source of space heating, natural gas is also the marginal generation fuel which sets the price of electricity in many U.S. electricity markets. As gas prices have risen, so have the costs to generate electricity.
CES has helped many of our clients implement strategies to hedge supply costs ahead of the upcoming winter to mitigate the impact of a rising and volatile market. Those who remain on default service this winter are likely to see substantially higher energy bills, however, it is never too late to consider and discuss mitigation strategies with one of our Energy Services Advisors. If these news stories have you concerned, reach out to discuss with us today!
