Back in November of 2018, the Energy Information Administration (EIA) reported that there were record low amounts of natural gas in the U.S. storage reserves. In fact, stored natural gas was at the lowest levels it’s been in the last 5 years. And this was the lowest level to start the winter heating season in 15 years.
At the time of that November report prices of natural gas were spiking as forecasts of longer than normal cold snaps were expected.
That November forecast sent natural gas prices to a near two-year high—the highest since December of 2016.
What does that mean for the cost of your electricity? Well electricity costs follow the trends of natural gas. And natural gas is used to generate 65 – 70% of the electricity in the U.S.
After that November spike in prices, you can see from the graph below that the prices came down again. But notice they are still running higher than they were earlier in the year. And at this writing the weather in the Northeast went from spring like temperatures to record-breaking cold and snow while the Midwest is receiving another round of Arctic Air.
Combine all that and it’s pretty easy to predict that energy prices will be volatile and most likely going up!
Yours don’t have to if your business is in a deregulated state. Just last week we were able to actually lower a customer’s energy rate and save them $2,178 per year which is $6,537 over their 3-year contract. And some of our customers qualify now for a 5-year contract.
That means no matter what the prices of electricity and natural gas do at the utility companies, your fixed rate can give you confidence and let you ride through the storms of variable rates!
Give us a call today for a Free Energy Analysis. Call 1-866-748-2669. We will find you the best rate in the current market!