The New Year is upon us and so are some significant energy market changes. As always, Energetek is here to break down the complicated market as well as some mandated changes for our clients in New Jersey.

New Jersey Clients: The New Year is bringing an increase in NITS charges. 

What does this mean?

NITS, or transmission rates are regulated by the Federal Energy Regulatory Commission. Theses transmission rates apply to ALL retail energy users no matter if they are with the public utility (PSEG, Meted, PPL and ACE etc) or with a third party supplier. Basically, you can run but you can’t hide from these rate hikes. When there is a NITS increase, the FERC mandates that the charges are passed on to the customer because they must be remitted back to the governing body (state of NJ). PSEG will see the highest increase at 31% while Meted and Penelec will see an increase of 29%. 

Market Movement: Natural Gas Inventories experienced its largest withdrawal of the season. 

What does this mean?

A decrease in inventory, spikes pricing. Natural Gas inventories decreased by 107 Bcf, more than it was anticipated. Because natural gas is the main source of generation for electricity, natural gas dictates electric pricing. Electric pricing saw a small uptick in the Northeast reason due to the decrease in natural gas inventory and mildly colder weather – trading at $40/mWh. The increase will settle down once the colder weather dissipates. Prices for both electricity and natural gas continue to remain attractive for the months ahead and will continue to be a good market to hedge future contracts. 

Written by Kristin DeBias



Applied Energy Advisors