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The October wholesale contract continued to go higher yesterday, settling up $0.045 at $3.827 on the day. Today is the last day of trading the October wholesale contract with it expiration at 1:30. Some folks believe that this is the time of the year that it takes some extreme weather to effect the supply and demand of this product which is fundamentally correct, however, seasonally, this is also the time of the year, that we start our pre-winter rally. We have been going back and forth in this price area below $4.00 for the last two months so it seems that sellers can’t muster any lower prices in spite of a triple digit injection that we might have tomorrow. On the weather front, the 6 to 15 day forecast has not changed with below average temperatures in the East during the 6 to 10 day period and above average temperatures in the Mid West during the 11 to 15 day period. Early indications for the EIA storage change number are a build in the high 90’s to low 100’s. Last year at this time, we saw a build of 73 bcf.
In the continuing saga with the Constellation/Exelon merger, EDF Group, Constellation Energy's second-largest shareholder and a partner in its nuclear business, is threatening to vote against the company's plans to sell itself to Exelon Corp. after talks between them broke down last week, according to sources familiar with the discussions. Officials with EDF, a French company that owns nearly half of Constellation's nuclear power plants, are concerned the company will lose autonomy as a smaller part of Chicago-based Exelon, according to the sources. Unless that concern and other matters are resolved, the sources said, EDF could vote against the merger. The development is the latest challenge to the $7.9 billion merger announced in April. The Maryland Energy Administration and the Office of People's Counsel, the state's consumer advocate say they will oppose the deal unless Exelon and Constellation provide greater assurance that it would not harm Maryland customers. Analysts said it makes sense for EDF to use its vote as a bargaining chip to get its concerns addressed. A spokeswoman for Exelon confirmed Monday that the company has had talks with EDF and others since the merger was announced in April. "Unfortunately, EDF has made several demands which we have been unable to accommodate," said the spokeswoman, Judith Rader. "It appears to us that EDF's objective is to recoup financial losses they incurred in earlier transactions. Their approval is not required for the merger to be successful." EDF holds a 7.2 percent stake in Constellation.
In the state of Michigan, Consumers Energy customers have saved an estimated $67 million over the last two years through energy efficiency programs offered by the utility. A typical residential customer implementing energy efficiency measures has saved about $160 since the programs were launched in July 2009. Consumers Energy estimates that the total savings for customers over the life of energy efficiency measures implemented because of these programs will be $2.5 billion. More than 21,000 business customers have participated in at least one of Consumers Energy's energy efficiency programs, saving an estimated $32 million since the programs were launched. Consumers Energy launched the energy optimization programs in response to Michigan's 2008 energy reform law. That law requires Consumers Energy and other utilities to work with customers to reduce electric use by 5.5 percent and natural gas use by 3.85 percent by 2015. Consumers Energy's energy optimization programs include incentives for the purchase of highly efficient equipment and appliances; home energy audits; and an information campaign to help customers understand and choose the benefits of energy efficiency. Incentives are provided for customer purchases of highly efficient heating and cooling systems, water heaters, appliances, lighting, windows and insulation, and other energy efficiency measures.
In the Coned service territory, the New York PSC said that a proceeding to resolve outstanding rate ready consolidated billing issues at Consolidated Edison, which have reached an impasse under a prior collaborative, may not be instituted in the form requested by the Retail Energy Supply Association. According to Energy Matters, ConEd and ESCOs, in a post-rate case collaborative, have reached an impasse on what changes should be made to ConEd's rate ready consolidated billing system. Additionally, ConEd will not move forward with the consensus changes from the collaborative until complete consensus, or PSC adjudication, is reached on all outstanding issues. After having its initial request for the PSC to resolve the impasse denied, RESA petitioned the New York PSC to institute a new proceeding to examine and consider rate ready utility consolidated billing at ConEd.
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