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The October natural gas wholesale contract was lower yesterday by $0.161 on the day due to a larger than expected EIA injection of 87 bcf. While energy traders are gyrating here below or at $4.00, the story doesn’t change in that this market seems to be bottoming before our pre-winter rally. The build pushed inventories to 3,112 Bcf, or 140 Bcf below that of last year while the year-on-year deficit widened for the first time in four weeks, as the brief interruption in domestic production due to Tropical Storm Lee tightened the supply/demand balance for the reporting week. Most analysts expect that deficit will resume its contraction next week to reduce the year/year difference back to around 110-120Bcf before the end of the injection season of October 31st.
In the state of New York this, Deepwater Wind hailed today's announcement by the New York Power Authority (NYPA) to jumpstart the process for developing a large offshore wind farm to serve downstate New York.
NYPA has filed an application with the United States Department of the Interior to lease an offshore site at least 13 miles south of New York City and the western end of Long Island. NYPA also announced that it will conduct a competition to select a developer to build a utility-scale offshore wind farm of up to 700 megawatts of power at that site, a competition that Deepwater Wind will enter. In addition to Deepwater Wind's bid to build the utility-scale wind farm, Deepwater Wind is developing an innovative, high-voltage transmission system connecting the offshore wind farm to both New York and northern New Jersey. This transmission system, the SMRT Line (Submarine Regional Transmission Line) will allow Deepwater Wind to supply New York with "firm power," delivering a steady, reliable energy flow to New York, just like a base load plant.
Constellation Energy announced that its retail energy subsidiary has been selected by the Trenton Housing Authority to implement $11.5 million in energy conservation measures at five housing developments through a second phase of a guaranteed energy performance contract (EPC). The improvements are funded in part from energy savings realized from $10 million in energy conservation measures Constellation implemented in 2008 through the first phase of the EPC with the housing authority. In total, these energy conservation measures from Constellation will provide the Trenton Housing Authority an estimated $31 million in guaranteed energy savings over a 15-year period. "This expanded program for the Trenton Housing Authority is a great example of the value of energy savings and the U.S. Department of Housing and Urban Development's energy performance contracting program," said David Jurgens, vice president of business development, energy efficiency for Constellation Energy's retail business. During phase one of the project, Constellation implemented energy conservation measures for eight Trenton Housing Authority sites (totaling 1,852 units). Upgrades included new window installations, insulation improvements, steam radiator control valves and steam traps, water conservation measures, high-efficiency lighting upgrades, and ENERGY STAR rated refrigerators. The second phase of energy conservation measures includes installing updated HVAC systems, boilers and bathroom shower conversion. Construction is scheduled for completion by fall 2012.
In the Peach state this morning (Georgia), Commerce Energy said in a filing with the Georgia PSC that it will start selling natural gas products at Atlanta Gas Light on September 15, 2011, and offers went live on Commerce's website late this morning. The Georgia PSC re-authorized Commerce to serve customers at Atlanta Gas Light this spring, but Commerce has not offered residential service in Georgia since that order. Commerce, now owned by Just Energy, had not served customers at AGL since April 2009, when then-parent Universal Energy transferred or unwound the remaining national account contracts Commerce had in Georgia. Commerce had previously exited the Georgia residential market in 2006. Commerce's new filing with the Commission, in which Commerce states that it, "will start selling these products on September 15, 2011," includes two variable products, and two fixed products, as follows: 12 Billing Cycles Fixed: Fixed commodity charge of $0.689 per therm plus a customer service charge of $5.95, an early termination fee of $75 applies. 36 Billing Cycles Fixed: Fixed commodity charge of $0.799 per therm plus a customer service charge of $5.95, an early termination fee of $75 applies for each year of uncompleted service under the contract. Standard Variable Rate Plan: Commodity charge of $1.02 per therm plus a customer service charge of $5.95 or up to $9.95, depending on customer credit. Georgia Saver Variable: Commodity charge of $0.980 per therm plus a customer service charge of $5.95. This product includes guaranteed savings over the first 24 months or a $200 rebate. Under the Georgia Saver Variable savings guarantee, Commerce Energy will make reasonable efforts to ensure that the Simple Average Price of the customer's natural gas commodity price, for the initial 24 months of the program, is lower than the arithmetic mean of the Simple Average Prices of the following three competitive marketers: Georgia Natural Gas, SCANA Energy, and Gas South.
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