ABO Developments - Spring 2015 - (Page 14)

ENErgY MArkEt ForEcASt: What it Means for Your Energy Buying Strategy E 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 14 | A B O D E V E L O P ME NTS * www.abogny.com 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 http://www.abogny.com

Table of Contents for the Digital Edition of ABO Developments - Spring 2015

A Message from ABO Executive Director Dan Margulies
BuildingsNY 2015
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

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