How Rising Energy Prices Can Impact Your Business

THE U.S. ENERGY INFORMATION ADMINISTRATION PROJECTS ENERGY RATE INCREASES WITHIN A 12-18 MONTH TIMEFRAME (http://www.eia.doe.gov/steo/).

Business energy rates are determined by the price of natural gas. From January 2006 through October 2009, the contract price of natural gas was volatile, reaching historic highs during the summer months of 2008 and then collapsing down to near-record lows during the summer of 2009. To put this in perspective, the NYMEX Henry Hub 12-month strip price ranged from a high of $13.33 per month per MMBTU to a low of $3.93 per MMBTU during this period. From early 2010 until now, natural gas prices have remained at near-record lows and are currently $4.71 per MMBTU, only 20% from the low in 2009, while the high set in 2008 was 283% of today’s price.

The U.S. Energy Information Administration (EIA) expects the natural gas market to begin to tighten in 2012 (U.S. Energy Information Short-Term Energy and Summer Fuels Outlook, April 12, 2011).

Should the contract price of natural gas rise as predicted, the energy rates for your business will also increase, which could dramatically affect your operating costs and business profits.

Locking in low rates now could protect your business (and your profits) from the volatility of the energy cost increases the market has experienced in the past several years.

FIRST CHOICE POWER: POWERING THE SUCCESS OF TEXAS BUSINESS

We understand what it takes to run a business. That’s why we’re committed to putting your business first. From your first meeting with us, to your monthly statements, we take the time to find the right solution for your company, and continuously look for ways to make things easier for you. First Choice Power is your business champion because we believe businesses like yours power Texas.