A Commercial or Industrial Business’s Electricity Costs can be very closely correlated to the price of Natural Gas.
In areas of the country that are primarily supplied by Natural Gas, like the Northeast, the Price of Electricity = (Price of Natural Gas x Heat Rate) + Retail Adder, ( the additional premium to Suppliers charge to serve Reatil Accounts.
EarlyBird Power, A Nationally licensed Natural Gas and Electricity broker and Consultant, finds the lowest Retail Adders from amongst all suppliers to find our clients the lowest Electricity Pricing available in the Competitive Electricity Deregulated Market.
Natural Gas prices, it follows, affect the cost of electricity for consumers. If natural gas prices are lower, then the cost of electricity is lower, and vice versa. Since Electricity costs are a major expense for companies, having a consultant like EarlyBird Power find the best pricing, terms and conditions, can reduce operating budgets significantly.
Potential Natural Gas regulations, especially in the Northeast, could decrease available supplies of Natural Gas. They could do this, for instance, by limiting “Fracking “(and in doing so increasing price). “Fracking” is a low-cost process which induces fractures in a rock layer by drilling horizontally instead of vertically, dramatically increasing the amount of Natural Gas available for extraction.
Natural Gas and Electricity Prices are at 10 Year lows, and there are more upside risks to Energy prices at this level in our opinion.