It’s January 2nd, and Your Energy Budget is Already Wrong

It’s January 2nd, and Your Energy Budget is Already Wrong

by TheTomArnold

Variance in energy spend broadly comes from two sources: changes to energy costs and changes to energy use patterns. For most customers, energy costs are driven by tariffed rates, which change throughout the year. In California, for example, both PG&E and SCE filed for rate increases of about 5% in June 2012. Customers who buy electricity from third-party providers can face even greater price uncertainty, depending on how much market volatility they are exposed to through their purchasing agreements. We’ll delve more deeply into the details of price volatility in a future post, but the basic outlines of the story should be familiar to any energy professional. Price risk has been an essential feature of energy purchasing since Thomas Edison’s Pearl Street station opened.http://theenergycollective.com/thetomarnold/165581/it-s-january-2nd-and-your-energy-budget-already-wrong?utm_source=feedburner&utm_medium=feed&utm_campaign=The+Energy+Collective+%28all+posts%29