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About MMA MunEnergy Looking at energy budgets for 2010
With budget planning under way for cities and towns, there are many factors that need to be considered for budgeting energy costs. In addition to prices and usage patterns, the economic recession will have an impact on next year’s energy budgets.
The Energy Information Administration’s “Short-Term Energy Outlook,” released on Dec. 9, provides some guidance for setting budgets for electricity, natural gas, and vehicle fuel.
Electricity prices have been very volatile in recent years (see graph). Predicting where prices may go is difficult because fuel costs are influenced by a range of supply and demand variables. The Energy Information Administration projects that average consumer electricity prices nationwide will increase by 5 percent in 2009.
A consumer’s electricity consumption, meanwhile, can be gauged by reviewing historical usage patterns. In most cases, it makes sense to assume a slight increase over the prior year.
Typically, the natural gas market is closely tied to the electricity market in New England. Although natural gas prices have declined since the summer months, the Energy Information Administration projects that the pass-through of higher natural gas prices paid earlier in the year for supplies that will be called upon to meet winter demand is expected to contribute to a small increase in heating expenditures this winter for those who use gas as their primary heating fuel.
Regarding gas at the pump, with the assumption of a fragile economy throughout 2009, along with lower projected crude oil prices, the EIA projects the annual average retail gasoline price to be $2.03 per gallon.
When forecasting energy costs, it’s important to remember that there are many influences on energy prices.
Competitive energy suppliers offer products and services to help consumers manage their electricity budgets. A demand-response program is an example of an innovative energy solution that is gaining popularity. Municipalities that participate in a demand-response program can turn their ability to alter energy usage into a profitable asset.
Participating in a demand-response program has two major benefits: it reduces stress on the electricity grid, which can mitigate the need for additional generation sources; and it provides revenue to participants in the form of payments for curtailing electricity usage. Participants can then use these payments to invest in additional energy efficiency and environmental measures.
Constellation NewEnergy is the endorsed supplier to the MMA’s MunEnergy program. For more information, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
About MMA MunEnergy Looking at energy budgets for 2010
Looking at energy budgets for 2010
With budget planning under way for cities and towns, there are many factors that need to be considered for budgeting energy costs. In addition to prices and usage patterns, the economic recession will have an impact on next year’s energy budgets.
The Energy Information Administration’s “Short-Term Energy Outlook,” released on Dec. 9, provides some guidance for setting budgets for electricity, natural gas, and vehicle fuel.
Electricity prices have been very volatile in recent years (see graph). Predicting where prices may go is difficult because fuel costs are influenced by a range of supply and demand variables. The Energy Information Administration projects that average consumer electricity prices nationwide will increase by 5 percent in 2009.
A consumer’s electricity consumption, meanwhile, can be gauged by reviewing historical usage patterns. In most cases, it makes sense to assume a slight increase over the prior year.
Typically, the natural gas market is closely tied to the electricity market in New England. Although natural gas prices have declined since the summer months, the Energy Information Administration projects that the pass-through of higher natural gas prices paid earlier in the year for supplies that will be called upon to meet winter demand is expected to contribute to a small increase in heating expenditures this winter for those who use gas as their primary heating fuel.
Regarding gas at the pump, with the assumption of a fragile economy throughout 2009, along with lower projected crude oil prices, the EIA projects the annual average retail gasoline price to be $2.03 per gallon.
When forecasting energy costs, it’s important to remember that there are many influences on energy prices.
Competitive energy suppliers offer products and services to help consumers manage their electricity budgets. A demand-response program is an example of an innovative energy solution that is gaining popularity. Municipalities that participate in a demand-response program can turn their ability to alter energy usage into a profitable asset.
Participating in a demand-response program has two major benefits: it reduces stress on the electricity grid, which can mitigate the need for additional generation sources; and it provides revenue to participants in the form of payments for curtailing electricity usage. Participants can then use these payments to invest in additional energy efficiency and environmental measures.
Constellation NewEnergy is the endorsed supplier to the MMA’s MunEnergy program. For more information, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Written by MunEnergy Program Manager Emily Neill
