ABO Developments - Spring 2015 - (Page 14)
What it Means for Your Energy Buying Strategy
nergy prices have fluctuated wildly over
the past year. Natural gas dipped 34 percent from November 2014 to February
2015. Anyone who locked into a fixedrate contract before the drop is kicking himself.
Where do we go from here? To equip building operators to make the right decision on buying energy today
and renegotiating contracts that aren't working, ABO
presented Energy Market Forecast: What It Means For Your
Energy Buying Strategy, a discussion led by Tomas Devlin,
director of ABO-FS Energy Services, on February 26.
The State of the Market
Natural gas is a strong indicator of what is going on
in the electricity market, Devlin explained. More than
50 percent of New York State's electricity generation is
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from natural gas-fired plants, and changes in the two
commodities have correlated closely over the past year.
"During the polar vortex last winter [2013-2014],"
said Devlin, "we saw natural gas spike up over six dollars.
Anyone who was on any sort of variable contract last
December, January and February saw some pretty high
pricing." Electricity was as high as 20 cents per kilowatt
hour. Some people had locked in at eight or nine cents
in previous years, and, "that volatility has scared some
people," said Devlin.
Late fall into winter this year was an entirely different story. "We saw about a 17 percent drop in electricity prices based on a 12-month fixed pricing," said
Devlin. "If you had locked in a 12-month fixed-price, on
a medium-sized building you would've paid just under
10 cents, depending on your load profile. Right now that
Table of Contents for the Digital Edition of ABO Developments - Spring 2015
A Message from ABO Executive Director Dan Margulies
Spring 2015 State Legislative Agenda Three Key Industry Regulations Up for Renewal
Energy Market Forecast: What it Means for Your Energy Buying Strategy
Asbestos Testing Is Back, Bigger and Broader
Index of Advertisers/Advertisers dot com
ABO Developments - Spring 2015