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The April natural gas exchange wholesale contract once again tested the $3.80 support again on strong volume with a 20 cent range yesterday between the high price and the low price on the day. The natural gas market dipped down in the morning and then climbed all the way back to settle slightly above unchanged on the day. Despite the fact that the next 15 days show above to much above average temperatures for almost the entire nation, the bulls (folks that want prices to go higher by buying wholesale contacts) did not seem to have any problem holding the natural gas market up. The fact that this market has not collapsed could possibly be based on 2 macro events. First, another producer, Excel Energy in Minnesota, announced that it has plans to shut 2 coal fired plants and replace them with natural gas burning plants by 2016. Two power plants switching over is certainly not enough to influence a market but the trend toward gas fired plants seems to be growing or gaining momentum in our environmental leaning economy. Second, the disaster in Japan could have a profound long term effect on the future of nuclear power in this country and around the world. And if we don’t generate power using nuclear energy, the current perception is that the next best energy source will be natural gas. Both of these scenarios are long term in their impact but any increase in demand will make energy traders think twice before putting on enormous short positions believing prices only have one way to go which is lower based on current production of shale gas formations.
In the deregulated electricity environment, energy providers could provide their customer’s intelligence that the distribution company that serves them is allowing certain nonprofit organizations in this case being served by PPL Electric Utilities to apply for a free energy assessment to help them increase energy efficiency in reducing electric bills and improve their bottom line. Under a new program announced Tuesday (3/15) by the utility, select nonprofit customers -- a group that could range from volunteer fire companies to houses of worship and community-based organizations can get a free energy efficiency checkup. The assessment will include detailed recommendations on the highest priority and most effective action to reduce electricity use. Funding for the program is limited and is on a first-come, first- served basis. PPL Electric Utilities plans to offer assessments for at least 100 applicants across the company's 29- county service territory in central and eastern Pennsylvania. The program will run until Sept. 1. The criteria is that applicant’s must be served by PPL Electric Utilities GS1 or GS3 rate schedule with less than $100,000 a year in electric bills, excluding schools and government agencies. Own the nonprofit structure or systems or be able to show they have permission from the property owner to modify the building and its systems. Have less than 50 full-time-equivalent employees and have less than 50,000 square feet of office or community meeting space. Be a 501-C organization with three or less locations performing the same business services within the PPL Electric Utilities service territory. Have no engineering, energy management or building systems maintenance personnel on site or on their payroll. PPL Electric Utilities said eligible customers can apply regardless of whether they shop for their electric supply or rely on the company to purchase electricity on their behalf.
Since the earthquake in Japan last week, the capability of nuclear plants in North America is receiving lots of press with focus on plants such as Beaver Valley Nuclear Power Station being built to withstand all kinds of natural disasters including earthquakes. But while the chances of a seismic event on the scale of what occurred in Japan last week, happening here are minuscule, the U.S. Nuclear Regulatory Commission still takes seriously that possibility. “Each of the plants in the United States was designed to withstand the worst-case scenario for a variety of natural disasters, and since 9/11, the NRC has increased what they consider for terrorism events as well," said Neil Sheehan, an NRC spokesman. "Even at older facilities like Beaver Valley, we still pay attention to those factors as the years pass."
The earthquake and subsequent tsunami in Japan has disrupted electricity and water supplies to several nuclear power stations there; the water is especially crucial, as it is needed to cool the reactors that drive power generation and lack of water in those plants has caused near-meltdown conditions. Sheehan said American nuclear generation plants are designed to withstand the worst of whatever nature throws at them; the designs are specific to conditions in a particular region. For example, seismic conditions are a concern for a plant in western Pennsylvania, but not to the degree that they would be in California," Sheehan said. Around the Gulf of Mexico, the NRC is looking at hurricanes; in the Plains or the Midwest, they’re looking at tornadoes or lightning storms. The designs work when they need to, said John Metzger, director of the nuclear engineering program at the University of Pittsburgh. "In 1992, Hurricane Andrew made a pretty direct hit on a plant in south Florida," Metzger said of the Category 5 storm. "The plant was well-built and it was able to continue operating."
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