Archive for the ‘Purchasing’ Category

Market Dynamics: Gas 1

Jan 31

What is happening with natural gas? Where is the market compared to historical forward prices? How about historical spot prices? Customers have been asking for some context on where gas prices are compared to historical prices. Some context is always helpful.     The last 2 months were the the 2 lowest forward price months […]

Keep Reading

Predictable, reliable, improved energy outcomes: Step 3 1

Jun 26

As we mentioned in our first two posts in this series, when we poll energy managers about their biggest concerns about energy, the responses are “controlling costs”, “managing out-of-control costs” or a general concern about “rising costs”. There is always a concern that energy costs are completely out of control, and are impossible to predict […]

Keep Reading

3 Reasons Energy Cost Management Is Different from Procurement 1

Nov 18

  As we go about the business of bringing transparency to energy markets, we sometimes hear clients or suppliers or consultants refer to this work as “procurement” of electricity. We don’t use the word procurement here. Why? Every institution needs to procure materials– whether it’s paper, or other materials and supplies or even large pieces […]

Keep Reading

Electricity Purchasing Checklist: Pre, during and post contract 1

Sep 26

“Retail is details.”* That is a true-ism when it comes to buying power and gas in deregulated markets. Last week we talked about the language of energy — and how inscrutable the language of energy can be. This week we transition to the pragmatic and detail-oriented process of preparing for, executing and ensuring a thorough […]

Keep Reading

Winter is The New Summer 1

Aug 11

We may be a bit of a broken record on this subject, but it bears repeating. Winter is the New Summer. In what respect? Well, the prices that we saw last Winter in NY resemble prices that we had grown accustomed to paying in this market during the Summer Peak Demand months of July and […]

Keep Reading

Looking to buy power? Today is not the day. 1

Dec 16

  Take a look at the recent run-up in electricity forward curves.     There are a number of reasons for this run-up: weather, speculation, gas withdrawals. Bloomberg’s article “Hedge Funds’ Natural Gas Bets Jump as Thermometer Drops: Energy“ summarizes all of the reasons for the run-up. We may see Winter power prices drop when […]

Keep Reading

How do costs vary from year to year? 1

Sep 25

  We’ve been getting questions about how markets have changed and what is different between 2012 and 2013. Many businesses are working on their budgets now for 2014, and it seems you want to know whether your costs will be more like 2012 or 2013? The bottom line is that stability and predictability in energy […]

Keep Reading

Energy Market News: May 17, 2013 1

May 17

Summary of Energy News Headlines Energy news from The Megawatt Hour today focuses on: natural gas markets (and their impact on forward energy prices); more data and analytics on capacity markets, including a video explanation of capacity markets from The Megawatt Hour’s Bob Bright; an article about concerns raised in Illinois about the State’s renewable […]

Keep Reading

Forward market prices: Spring dip? 1

May 3

There is a conventional wisdom among energy suppliers, consultants and brokers that there is a “Spring dip” in market prices. We haven’t really seen it so far this year. (Why not? Good question. Perhaps it is because we have had colder weather persisting late into the Spring. Perhaps it is a technical/trader-driven market run up.) […]

Keep Reading

How effective are reverse auctions? 1

Mar 28

  Lately, we have received a lot of questions about the effectiveness of energy auctions (reverse auctions). An energy auction, or reverse auction, is a service that is run by an online auction platform, of which there are several. The auction platform posts information about a customer’s electricity or gas supply needs, and then recruits […]

Keep Reading