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The Basics: The Competitive Energy Market

Since the early days of the 20th century, the energy industry consisted of a large group of regional monopolies—companies that were the only providers of electricity and natural gas supply and delivery for their service areas. These utilities were heavily regulated by the government to protect the customers’ service interests.

Offering Choices for Electricity Consumers
Beginning in the mid-1990s, a number of states and provinces passed legislation that deregulated the industry and established competitive energy markets. In competitive energy markets, customers are no longer limited to securing their energy supply from their regional utility. Instead, they can “shop” for their electricity and choose the provider that provides the rate, contract structures, and related services that best suit their business needs.

What Energy Choice Provides
Today, energy choice offers businesses many options for managing their energy budget. By understanding your choices and the impact of your energy on your business, you can choose an electricity contract that supports your goals, budget objectives, and your bottom line.

Ultimately, deregulation empowers consumers with choices. Retail energy suppliers compete for your business by offering competitive by offering lower rates, reliable service, and innovative products and services.

What does energy choice mean for you? Read more.



DAILY MARKET UPDATES

  • Click here for the Canadian Weekly Market Update.

  • Market Update for May 17, 2012
    The June '12 natural gas contract is up 2.7 cents to $2.645. June '12 crude contact is down 6 cents at $92.75.
     

  • Market Factors:

    Bullish Factors
    - Coal-to-gas switching
    - Potential production cutbacks
    - EPA regulations (long-term only)
    - Below-average additions to storage

    - Bearish Factors
    - Natural gas glut
    - Mild weather

  • Next-day Power Traded for 5/17/12
    Mass Hub
    $27.70    		 Cin Hub
    $29.58    		 NY Zone A
    $28.00
    PJM
    West Hub
    $32.92    		 ERCOT
    North
    $29.02    		 CA
    SP15
    $32.60

  • Summary for 5-17-12
    The June '12 contract increased 11.8 cents, closing at $2.618. The market jumped significantly because of revised forecasts for warmer weather at many major consuming hubs Crude continued its downward spiral, hitting a 6-month low because of ongoing concerns about the viability of the European Union and U.S. inventory levels that are the highest they've been in decades.

    EIA Storage Report: 5-17-12

    The EIA reported an injection of 61 Bcf, which was slightly above expectations.

    Storage now stands at:2.667 Tcf

    Last year: 1.893 Tcf

    5-year average: 1.894 Tcf

 
 

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