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Spring 2010  Issue 1
Welcome to Howell Energy Consulting  

Howell Energy Consulting brings you the opportunity to deal with an energy professional that will create competition for your business's electricity and natural gas requirements while managing the energy procurement for your business or organization allowing you to focus on the core mission of your business. 
Howell Energy Consulting is a licensed energy professional in Connecticut and Massachusetts. For more information :
phone: 860-205-3863
web site:
Understanding Retail Electric Pricing



A little confused about purchasing electricity from someone other than your current LDC or still confused even though you have switched?   Hopefully these newsletters will provide some  insight into the retail energy market.


On any given day retailers prices may vary significantly, even when controls are put in place for product and term. 


Having been the Director of Retail Pricing for Direct Energy and Manger of  Retail Pricing for the former Select Energy (purchased by HESS) I can tell you there is a lot more to electric pricing than meets the eye.   One of the most important aspects to consider is that suppliers are guessing (in a knowledgeable way) on what some of the cost components of a price are going to be in the future.  Electric prices are part science , part art.    As an example,  a supplier may be providing you with a two year term price while only being able to know with some clarity what the cost of supply may be for the winter or summer in the second year of the term.   This is why as a consumer you want to see as many supplier prices as possible.  Depending on how  a supplier has been performing relative to the market when  purchasing electricity for its customers you might expect that supplier to be more or less cautious.


Retail electric pricing is an exercise in matching your electric consumption to the suppliers forecast of the wholesale cost of electricity.   Think through the typical day for your business, early in the morning building systems, lighting, heating etc. begin to come on in preparation for the workday.   As the day progresses, either production increases, heating or cooling needs increase and lighting comes on, fade during midday and then come back on as the sun begins to set.  For most users this means that usage a parabola shape.  Not surprisingly the hourly cost of electricity follows this same shape becoming more costly during the day and falling during the evening. 


How your use matches up to that parabola determines how your business will differ from the average cost of the New England system.



So the suppliers task is difficult and given their outlook on monthly prices and their view of how costs can vary during the day you can see how one supplier may provide lower prices than the other and as views change the supplier with the formerly high price can become the supplier with the now lowest price.


These are some of the major causes of price variation but not the only causes and I would enjoy sharing  this information with your business, or trade organization that you business belongs to.  If you are looking for a speaker on energy issues, I would be happy to address your group.


In This Issue
Understanding Retail Electic Pricing
Market Trends
Market Trends

Electricity and natural gas prices have been falling since mid-February. Part of the decline is due to the impact of a waning winter while the other reflects an economic recovery that has not fully materialized. While this is great short term news, Howell Energy Consulting has some great news about longer term prices. For an appointment to discuss how you can take advantage of these low market prices Call Derek Howell at 860-205-3863.
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Howell Consulting Attends Globalcon


On March 24 - 25th the Association of Energy Engineers held their annual conference and trade show in Philadelphia, PA.   Possibly the highlight of the show was the ever expanding notion of "Sustainability". 


The US EPA identifies the traditional definition of  sustainability as, " polices and strategies that meet society's present needs without compromising the ability of future generations to meet their own needs.  "


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Think of this concept as applied to your industry or firm and you get a more holistic concept of conservation and renewable resources.   The concept when applied to an individual firm can lead to a healthier work environment, cost saving and a road map of how to reach your future goals.  While energy procurement is one aspect of sustainability, it is the future that will really matter and  Howell Consulting would  be happy to meet with your business or organization to help you plan your future.


To learn more about Howell Energy Consulting
Derek Howell
Howell EnergyConsulting LLC