New Standard Offer Prices for National Grid in Massachusetts

The Massachusetts DPU approved new standard offer electricity supply pricing for National Grid customers for the period May 2013 to October 2013.

Fixed Basic Service Charge in ¢/kWh
May-October 2013
G-1: 6.827
Streetlights: 6.827

Fixed Basic Service Charge in ¢/kWh
May-July 2013
G-2, G-3 May: 7.208
G-2, G-3 June: 7.152
G-2, G-3 July: 7.119

Variable Basic Service Charge in ¢/kWh
May-October 2013
NEMA G-2, G-3:
May: 6.516
June: 7.448
July: 7.626

SEMA G-2, G-3
May: 6.495
June: 7.342
July: 7.583

WCMA G-2, G-3
May: 6.408
June: 7.336
July: 7.575

G-1 in all zones
May: 6.899
June: 7.347
July 7.6861
August: 7.354
September: 6.998
October: 7.030
Streetlights: 6.827

The complete DPU filing can be viewed here.

To protect your business from price fluctuations and obtain the lowest possible competitive pricing, contact Better Cost Control.

New Jersey Electric Rates to Change

The NJ State Board of Public Utilities on Thursday approved the results of state’s annual electricity auction. It sets the wholesale electricity prices that the state’s electric utilities will pay and pass through to all New Jersey customers.

For three of the state’s four utilities, including Jersey Central Power & Light and Atlantic City Electric, there will be a  decrease in supply rates on June 1.  Rates for for PSE&G will be essentially the same.

Average JCP&L ratepayers will see a decrease of 3 percent; Atlantic City Electric customers will see a decrease of 5.35 percent and PSE&G customers will see their average rates increase by .05 percent.

The price of wholesale natural gas, which powers electric plants, is lower than in 2010. Since 2009, average energy costs for  small and medium-sized businesses have fallen about 30 percent, the BPU said.

But whether prices continue to fall in future years is unknown. “We have seen relative price stability in the last couple of years,” Hanna said. “What is going to happen in the future with natural gas prices is very difficult to predict.”  This is why fixed price contracts provide the opportunity to lock in long term fixed prices to protect from increases.

The value of both electricity auctions was about $7 billion, which represents approximately 8,700 megawatts of electric generating capacity.

Connecticut Light & Power Announces New Standard Service and Last Resort Rates

Connecticut Light & Power (CL&P) announced new electricity supply pricing for the six month period Jan 1, 2013 to June 30, 2013. Note that when comparing these prices to fixed price contract supply prices, you will find that longer term contracts will have a slightly higher price, which accounts for the fact that prices are forecast to rise after June 30.

CL&P Standard Service Rates, January 2013 – June 2013 (¢/kWh)

Rate 1: 7.615
Rate 5: 7.615
Rate 7: On-Peak 10.236 and Off-Peak 6.736
Rate 18: 7.808
Rate 27: On-Peak 9.858 and Off-Peak 6.858
Rate 29: 7.808
Rate 30: 7.808
Rate 35: 7.808
Rate 37: On-Peak 9.858 and Off-Peak 6.858
Rate 40: 7.808
Rate 41: (less than 500 kW) On-Peak 9.790 and Off-Peak 6.790
Rate 55: (less than 500 kW) On-Peak 9.790 and Off-Peak 6.790

Rate 56: (less than 500 kW) On-Peak 9.790 and Off-Peak 6.790

Rate 115 7.808
Rate 116 7.155
Rate 117 7.155
Rate 119 7.647

CL&P Last Resort Service Rates, Jan. 2013 – March 2013
(¢/kWh)

Rates 39, 41, 55, 56, 57, & 58 (at or over 500 kW):
January: 8.707
February: 7.955
March: 6.364

For Last Resort Service rate classes with peak/off peak periods, the Last Resort Service rates are identical for each period.
All rates listed above rates reflect the Generation Service Charge plus the bypassable Federally Mandated Congestion Charge of 0.150 cents per kWh.

First Energy files for Default Service Price to Compare

First Energy just filed for new Default Service rates in Pennsylvania.  These will be the new Price-to-Compare for all commercial electricity customers to use when comparing competitive electricity price offers.

Assuming PUC approval, rate effective September 1, 2012 to November 30, 2012 will be:

MetEd Commercial: $0.07181 per kwh

Penelec: $0.06541

Penn Power: $0.05550

As of this writing, fixed priced electricity contracts through Better Cost Control will save the customer money for the period that First Energy filed.

You may wonder why the dramatic price difference between Penn Power and the other two companies.  This is due to the months that they contracted their tranches of electricity. Penn Power has only two tranches that were purchased at auctions in  Jan 2012 and March 2012, when prices were at their lowest.  The offer prices are based on a weighted average of the different contract periods:

MetEd: Tranches purchased May, 2011, October 2011, Jan 2012, May 2012

Penelec: Tranches purchased May 2011, Oct 2011, Jan 2012, Mar 2012

Penn Power: Tranches Jan 2012 auction and March 2012 auction

To obtain a quotation for electricity or natural gas, contact Better Cost Control.

Pepco files Maryland new Type II Standard Offer Service Rate

Electric MeterPepco has filed with the Maryland PSC new Type II SOS rates for the three-month period beginning September 1, 2012.

Customers who do not shop for supply from an alternate electric provider in Maryland receive Standard Offer Service, or SOS, from their utility. How SOS is priced depends on a customer’s class and size.

Large business and industrial customers (those above 600 kW) receive hourly prices from the PJM wholesale market. These prices vary with the spot wholesale market price of electricity, which is extremely volatile. Thus, most large customers have contracted with a competitive energy provider to avoid these hourly prices, and receive rate stability.

Medium-sized business customers (25 kW to 600 kW) receive an SOS price that changes quarterly, and are known as Type II customers. All the electricity supply to serve these utility SOS customers is bought every three months, meaning prices often vary widely during the year. Customers can avoid these price fluctuations by contracting with a alternative electric provider.

SOS prices for residential and small commercial customers (under 25 kW) change every six months. Supply for this class, known as Type I, has been “laddered” to shield customers from exposure to the wholesale market at any one time. The supply needs for these customers are split into quarters, and 25% of supply is procured every six months for a period of two years — meaning the SOS price is a revolving mix of old and current supply contracts. While intended to shield small customers from the price volatility witnessed by larger customers, this “laddering” can also raise prices through risk premiums. The SOS price also does not fall as quickly when the wholesale market price falls, because only a small part of SOS supply is being bought in the current market. Customers can take advantage of falling prices faster by choosing a competitive energy provider that offers lower rates when market prices fall.

Pepco-MD Generation Service Charge 9/1/12 – 11/30/12 (¢/kWh)

Schedule MGT LV II
On Peak: 6.143
Intermediate: 6.143
Off Peak: 6.143

Schedule MGT 3A II
On Peak: 6.059
Intermediate: 6.059
Off Peak: 6.059

As of this writing, the above prices are lower than alternative fixed price contracts that begin in September.  Since these SOS rates are only for three months, all market indicators tell us that on December 1, 2012, customers on the SOS rate will find their prices rising. Contracting for a longer term will protect customers from price volatility.

Nstar announces new basic service rates for July 1

Massachusetts Nstar customers can breath some relief with lower prices beginning July 1.  Despite these price reductions, customers that decide to obtain fixed price electricity contracts from their energy broker will still save money with a fixed price contract, though not the enormous savings seen in the beginning of 2012.

Commercial & Street Lighting
Fixed Price Option (July – December): 6.686

Monthly Variable Price Option
July: 6.738
August: 6.700
September: 6.173
October: 6.200
November: 6.447
December: 7.796

Industrial (NEMA)
Fixed Price Option (July – September): 5.550

Monthly Variable Price Option
July: 5.695
August: 5.629
September: 5.300

Industrial (SEMA)
Fixed Price Option (July – September): 5.362

Monthly Variable Price Option
July: 5.545
August: 5.461
September: 5.038