August 2017 Energy Report
This email contains the month over month comparison of energy prices as well as the monthly commodity settlement prices. If you have any questions about your energy and waste portfolio or for an invoice and energy audits, price quotes for natural gas, electricity or waste, please contact RJ Consulting today.
Finally, natural gas prices broke the $3/Dth. It only took five months of trading to settle the August 2017 contract at $2.987/Dth, down $0.08/Dth from the July 2017 contract. The cooler than summer temperatures have kept natural gas electric generation demand down. Right now, the expected range for natural gas for the rest of 2017 is between $2.90 and $3.30/Dth. Last year, the August contract settled down from July and gained $0.20/Dth for the September settle. This year could show a repeat of last year if we have an Indian summer and experience an active hurricane season. Based on the NYMEX settle graph below, it looks like we can expect to see a repeat of 2016. My projection for the September 2017 settle is between $2.90/Dth to $3.10/Dth.
August typically produces some heat waves and some hot day and nights. Please remember that last year, ISO-NE set the capacity tag on August 12, 2016, between the hours of 2 pm and 3 pm as the peak demand for the Northeast. We had a few hot days in July which they might have recorded for this year, but please be mindful of the weather in August. If we are expecting a heat wave or a scorching and humid day, this could be the day when your capacity tag gets set for the next 12 months. The timing should be one hour between 12 PM and 4 PM so try and increase the thermostat a few degrees, turn off lights and other equipment that does not need to run. With the forward capacity prices at record highs, any kW saved can produce significant savings especially if you are looking to lock 24 months or longer. If you have backup generation, you might want to test the system in the afternoon on really hot days, hint, hint!
Summer is my favorite season but as a friendly reminder, the heating season is only three months away. Do you remember the problems you said you would address in the summer? There are plenty of rebates and incentives that can help offset the cost, provide financing and other tools to help get the upgrades and problems resolved. If you have a high year round hot water demand, a CHP unit might be something worth reviewing. Need help; let’s talk!
Please contact RJ Consulting if you would like to review your energy and waste portfolio. If you have any feedback or suggestions to the monthly emails, please share!
August 2017 Energy Report
If you have any questions or concerns about your current energy portfolio, please call or email to discuss.
Roman Katynski, CEP
Energy & Waste Consultant, Owner
RJ Consulting LLC
An Energy and Waste Consulting Company