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Winter 2011  Issue 4
Welcome to Howell Energy Consulting  

Howell Energy Consulting brings you the opportunity to focus on the core mission of your business, while allowing an energy professional to create competition for your electricity and natural gas requirements through managed procurement.

Howell Energy Consulting is a licensed energy professional in Connecticut and Massachusetts. For more information :

phone: 860-205-3863
web site:


Energy Price Outlook  


Well it has been cold! Cold weather means higher energy use and got it...higher prices. The real question is whether those higher prices will last. Lets go through our fundamentals and then lets think through some buying strategies that you may be interested in employing.

The Economy
Hurray!  The job outlook seems to be improving. On January 7th the the U.S. labor department announced that the unemployment rate fell to 9.4% in December from 9.8% in November. With higher employment empty commercial space fills and orders begin to increase.  The Dow Jones Industrial average has popped over 11,600 which indicates Wall Street has regained confidence. Still no one is anticipating a boom but a slow bumpy upward trend.


Natural gas storage has fallen below last year's record levels but still remains closer to last year than the five year average.  The recent increase in prices has been driven by weather. With storage still close to last year's record levels the increase in price has been too small to stimulate additional production. Continued increased activity by shale gas producers, though, will further mitigate upward pressure on prices. Just to emphasize the point, the 12 month price for electricity on January 7th was roughly the same as the 12 month price this past August.



December was a cold month and so far January has been also. In fact, December was nearly 7.0% colder than normal.  The cold premium has added nearly $.01/KWh to the market.

Outlook and Buying Strategies:
Cold weather and an improving economy probably mean that  the low point of the current cycle may have been posted this past fall. The continued expansion of supply though will dampen the upside.  

With that said, energy prices are in a good position to drop come springtime. This opens the door for three strategies:

  • Shop for fixed prices with a start date in March.
  • Purchase floating market products now and fix later this spring.
  • Return to utility service and begin shopping now so that you are ready to buy in the Spring.

To understand how these strategies apply to your business Call Howell Energy Consulting to create a procurement plan for your business.

About Derek Howell 

With over 30 years in the energy industry and 12 years of experience in the deregulated energy business, Derek Howell's expertise covers the broad expanse of the electricity and natural gas markets.  

Prior to the founding of Howell Energy Consulting. Mr. Howell  was Direct Energy's Director of Retail Pricing for  New England and New York regions. 


In This Issue
Energy Price Outlook
CL&P Last Resort Service Rates
The Longer Term
Opportunity for Your Buisness

Attention : If you are a CL&P Rate 30, 35,40 or 55/56 (Less than 500 KW) customer!  

CL&P's 2011 Generation Service Rates are still well above the market.  Your business may be able to save as much as $18,000 and possibly more in 2011 by switching to a marketer. Make your new year's resolution to take advantage of the deregulated energy market by calling Howell Energy Consulting.  Call Derek Howell at 860-205-3863.


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The Game Changer


The exploitation of shale gas has drastically altered the cost outlook for natural gas and electricity. If your business has a long run energy procurement plan let's discuss how this development may affect your business.    Call Howell Energy Consulting to create a long term plan for your organization.

The U.S. Energy Information Annual Energy Outlook for 2011 

The U.S. EIA has released its Annual Energy Outlook for 2011.  The key change in the 2011 Outlook is the doubling of the estimated shale natural gas reserves. The EIA's forecasted price of  natural gas is 16% lower than what was forecast one year ago.  This fundamental change has implications on how you may want to procure energy.  Howell Energy Consulting would be happy to meet with you to discuss how you can best position your firm to take advantage of this change to the energy market.



To learn more about Howell Energy Consulting Go to:
Derek Howell
Howell EnergyConsulting LLC