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Archive for March, 2012

Coal Use On The Decline

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With natural gas prices at a new 10-year low amid record storage levels and growing production, coal usage has been under pressure from not only the cost competition with natural gas but from the political pressure associated with the desire to curb harmful emissions.  Coal consumption by the U.S. electric sector in 2012, according to EIA, is expected to fall below 900 million short tons for the first time since 1996 (See below).  Coal demand by the power sector is expected to drop by 5% in 2012 and recover a bit in 2013.

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Chicagoland Sports Teams to Start Earth Month with Green Games

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Earth Day is a few weeks away and the Chicago Blackhawks and Chicago Bulls are ahead of the game by beginning Earth Month with “green games” sponsored by Constellation Energy, an Exelon company.  

The Blackhawks “green game” is slated for their game against the Minnesota Wild on Sunday, April 1 and the Bulls “green game” will be on Monday, April 2 when they host the Houston Rockets.

Both teams will have Green-e® Energy Certified renewable energy certificates (RECs) retired on…
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EIA Reports Natural Gas Stocks Climb for First Time this Year

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The Energy Information Administration reported natural gas stocks climbed by 11 Bcf in the week ending March 16, slightly higher than the market consensus. 

Thursday’s report marks the first injection since November 2011 and likely the end of winter 2011/2012 withdrawal season.  Traditionally, the winter heating/withdrawal season is from November through March.  The first injection of 2012 comes about two weeks earlier than normal and pushes total inventories to 2,380 Bcf, further expanding the year-over-year surplus. 

Following the report, natural gas futures fell as the continued supply overhang weighs on prices.  For the remaining two weeks in March…
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Legislation Introduced to Expand Electric Competition in Michigan

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Today Rep. Mike Shirkey (R-District 65) introduced new legislation in Michigan that would amend a portion of the 2008 Energy Bill (PA 286) and address the significant demand for customer choice and electric competition for more than 7,000 Michigan businesses waiting for the opportunity. The legislation proposes a measured, phased approach to expanding electric competition in Michigan and provides welcome relief to consumers who pay dramatically higher energy bills.

If enacted, the proposed legislation will gradually restore much needed competition to the state’s energy marketplace, give consumers equal opportunity to pay less for their energy, and put an end…
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Commonwealth of Pennsylvania’s Energy Conservation Measures Expected to Lower Energy Consumption & Associated Costs

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Recently, I wrote about how many government agencies have become more strategic with implementing sustainable energy strategies. State and local agencies in particular have a number of variables to consider when developing their sustainability plans such as rising operating costs, budget cuts, as well as ways to improve the infrastructure of their facilities.

The Commonwealth of Pennsylvania is taking a comprehensive approach to managing their total energy cost over time through energy conservation measures to lower energy consumption and associated costs.

Recently, the Commonwealth of Pennsylvania selected Constellation as an approved demand response service provider. This…
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Update on Regulatory Changes to Impact Demand Response Compensation in Organized Wholesale Energy Markets

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Customers and aggregators that act as demand response resources in organized wholesale energy markets should take notice of the Federal Energy Regulatory Commission (FERC)’s Order 745, issued on March 15, 2011.  FERC Order 745 directs each organized market operator (ISO) to institute incentive payments for certain demand response resources that curtail energy consumption during certain hours that would confer a “net benefit” to purchasers of wholesale supply by reducing price volatility during those hours.  

The incentive payment structure provides that participating demand resources will be paid the prevailing locational marginal price (LMP) at the wholesale market location…
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