In 2008; energy rates for both Gas & Electricity hit an all time high. The effects of Hurricane Katrina were felt all over the country in the form of higher energy prices. Ohio was no exception. Ohio rebounded more quickly than other states because Ohio has deregulated energy and plentiful local coal. De-Regulation decoupled supply from the utility’s Monopoly. Consumers could get their supply of energy, gas and electricity from any supplier that was permitted in their state. An amazing thing happened, prices to consumers began falling on a monthly basis! Savvy business owners opted for short-term supplier contracts. It was a great time to be an energy consumer. Every time you entered into a new contract your price for energy was less than you were previously paying! Awesome! If you didn’t like the quote from today’s supplier all you had to do was wait for another lower price. Time was always on your side. It was just like riding on a really high roller coaster. Riding the rate down was really really fun!
In 2012, we made it to the bottom of that big roller coaster hill. At that point, we were all hoping to coast along the bottom of that Price/Rate curve. And why not? Coal was still plentiful. Local generation of natural gas and electricity was still plentiful and growing. What’s not to like? This was a time when a business owners’ biggest concern was being put into a hold over rate at the end of their suppliers’ contract. Business owners still had time and competition on their side.
As a result we stayed at near record low prices/rates for nearly two years.
Then, in June 2014, the EPA mandated that coal can no longer be burned in existing facilities, as they are currently constructed. This could be a shock equal to that of Hurricane Katrina. Maybe worse. How high consumer pricing/rates will go is unknown. However, what is already known does not bode well for price/rate shoppers. These are the facts:
● Coal kept Ohio’s energy price/rate very lower because it’s local and plentiful, now it’s forbidden.
● Refitting coal fired power plants to conform to the newest EPA standards is very expensive. This is the second mandated refit in four years! Ultimately the consumer will have to pay for it.
● Eight power plants closed. Four will remain closed indefinitely. Four will re-open at some point in Northern Ohio. Local supply is less; therefore, transmission costs must rise. Care to guess who pays for that?
I have a client who was accustom to waiting and rate shopping. We had conversations for five months, and I am sure she was taking to others as well. She kept waiting and shopping and her new price/rate kept increasing. When she finally entered into a new agreement with me, her price/rate had increased by nearly 35%! I have the ability to secure her price/rate nine months in advance of her current contract expiration date. She chose instead to price/rate shop herself into a hefty price/rate increase. It could have been avoided. It should have been avoided. To avoid unnecessary price/rate increases on your commercial gas & electricity bills, contact me. I can help.
Your Guide to Ohio Energy,
Marco
Phone: 216-856-6721
Fax: 216-803-4800
MarcoDimbo@ohioenergyguide.com
http://www.ohioenergyguide.com
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