Is This 2013's Last Opportunity To Lock In Year-Over-Year Savings?

Energy Prices Head Toward Their Traditional Seasonal Highs, Is This Your Last Opportunity To Lock In  Year-Over-Year Cost Savings?         

 It's just a simple fact.  All electricity contacts only satisfy  your company's needs for the term of the contract, and until your facilities close you're always in need of electricity.  With seasonal energy prices about to head higher as they normally do, now is your final  window of opportunity to save money compared to your present rate, especially if you're coming off a 24 or 36 month contract or within a year of your  next renewal date.   While waiting longer could result in lower prices, we believe there's a much greater risk of  higher pricing given that the market is already skewed to the upside due to normal winter demand and mandatory coal plant retirements required by the EPA.

As the chart below shows, over the last 22 years natural gas (which is the primary fuel used in power plants) has tended to provide it's lowest annual pricing in August and September, and this year looks no different.  Historically, prices have consistently tended to rise into October and November as the industry tries to build it's inventory to meet cold-weather demand, with an additional increase into April as warm-weather distributors accumulate their own inventory to generate electricity and meet regional cooling demands.

Where are we historically?

The chart below exhibits two seasonal patterns: the most recent 15 years (dotted) and the entire 22 years of the Natural Gas contract (solid line).  The graph reaching zero represents the seasonal low (the time of year when prices are most consistently low); the graph at 100 represents the seasonal high (when prices are most consistently high).  The graph at 20 represents when prices have tended to be in the lower 20% of the year's eventual range.

Where are we today? Need More Confirmation?

Now look at  the chart below. It was taken today (8-2-2013) and shows that this year's seasonal price movements have followed their traditional patterns almost 100%. It is our opinion that the next few weeks will provide the final opportunity to lock in the lowest electricity rates we'll see in the next  6-12 months. Now is the time to act!    

Already Use a Broker?

Just because you currently utilize the benefits of a broker does not guarantee that you're seeing  the lowest rates available. With over 100 licensed retail electric providers in Texas alone, doesn't it make sense to utilize all available resources to be sure you're really seeing the most aggressive rates?  Why not let someone else  also compete for your business?  You have nothing to lose.    

In closing, the opinions expressed above are strictly my own based on over 25 years of trading experience in the wholesale energy market.  Unlike most brokers and consultants who prefer to stay neutral in order to “never be wrong”, I believe that  clients need more than just “numbers and choices”.  Anybody can supply that. Has your current broker called and offered such information and advice?  Have they really earned your business?