Time For a Price Increase? Maryland’s Energy Prices Are Increasing to Pay for Clean Energy Act
What’s Happening? In July we released an article explaining Maryland’s newly approved Clean Jobs Act – Maryland’s commitment to sourcing 50 percent
What’s Happening? In July we released an article explaining Maryland’s newly approved Clean Jobs Act – Maryland’s commitment to sourcing 50 percent
In July we released an article explaining Maryland’s newly approved Clean Jobs Act – Maryland’s commitment to sourcing 50 percent of it’s energy from clean and renewable energy sources. That same article explained that as of the 1st of October, an additional “RPS” (Renewable Portfolio Standard) charge will be added to every energy bill, which will result in a significant increase in energy spend. The more energy you use, the more your bill will increase.
So what can you do about it?
Believe it or not, between the upcoming increase, and three-years lows in natural gas pricing, Maryland business owners are presented with a perfect opportunity to save on energy – right now – and extended that out for up to 60 months, avoiding the immediate energy bill increases and buying time for better budget planning.
Here you can see a short presentation from one of Maryland’s main energy suppliers, Direct Energy, discussing the RPS changes that will increase rates by approximately 3 mils per kWh for all contracts not signed before October 1st, 2019. Signing an energy contract, prior to this date, will protect you from increased prices.
Not only should Maryland energy consumers look for best energy pricing agreements, but all three-year lows in the natural gas market have created this a “perfect timing situation”.
The timing of entering a new energy agreement now is to your advantage based on where Natural Gas and Electricity prices are presently. We refer to Natural Gas because it is now the largest source of power for the generation of electricity; therefore, their pricing is highly correlated.
This is important because over the last 20 years, Natural Gas has been near present price levels only 3 times, in 2001, 2012 and 2016, and prices this low always preceded multiyear periods of higher prices. Therefore, based on this empirical evidence there is no reason to believe today’s low prices will not lead to much higher prices long-term.
Also, over the last 20 years more cyclical lows occurred in the late August/September timeframe than any other, prior to major price increases. A more detailed explanation of this phenomena is contained in my August 27th Energy Update, which you can read by clicking on August 27th Energy Update.
Therefore, since more cyclical lows prior to major price increases occur in the late August/September timeframe, this fact in conjunction with the RPS increases for all contracts not signed by Oct 1st will help you appreciate the wisdom in executing an agreement before Oct 1st.
To help Maryland energy consumers, between now and October 1st, Energy Professionals is offering a free energy analysis to any Maryland business that is concerned by this increase. We can assist you to locate the best savings opportunity and find the best strategy to fit your needs. Every analysis is completely obligation free.
Founded in 1999, Energy Professionals is one of North America’s leading energy consultants working with commercial customers to reduce and control their energy budgets. We build client-specific, comprehensive energy strategies that factor in our clients’ goals and objectives. Utilizing our extensive network of suppliers, energy efficiency experts and renewable energy partners, we bring the most effective, efficient and innovative technologies to the table. We offer both focused solutions to a specific issue and broad plans to address long-term growth, paving the way for energy independence, providing more choice and less waste.
Energy Professionals is committed to finding its customers the best possible rates on electricity and natural gas. Tell us your location and service type and our energy manager will connect you to the most competitive offers.
Switching to an alternate supplier is easy. There is no chance of service disruption, and you'll continue with your current utility for energy delivery and emergency service. Take a few minutes to discover your best offers, and enjoy the benefits of retail energy in your home or business.
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