Will electricity and natural gas prices rise or decrease in 09? How about in 2010? The EIA expects that 09 and 2010 will show increases (unless the economic recovery is slower than expected). They base this on several factors:

• NG is becoming increasingly competitive with coal in the electricity sector thus they expect to see increased usage of the fuel.
• Coal generation is expected to sink by 3.2% this year while NG increases by 1.6%
• NG production will shrink in 09 as well based on the number of rig counts going down
• 5% year-over-year decrease in the number of cooling days ( days in which cooling is required) is expected this summer
• Usage is down and cost are spread over a smaller number of kilowatt hours, thus higher rate

So, does that mean that prices are going up...for sure? No. The economy has a HUGE role in the direction in which prices will head.

Risk vs. Reward is always the question. How much risk for how much reward? Right now prices are historically very low...that fact cannot be ignored.

Market Updates:

Illinois- we continue to see great savings opportunities for both electricity and natural gas in the ComEd and Ameren territories in Illinois. The market has been extremely active in 2009.

Michigan- the natural gas market in Michigan is growing. According to Restructuring Today, Consumers Energy, Consolidated Energy, and Semco Energy Gas are all showing increases in shopping rates in 2008. That is good news for a market that is suffering mightily in this economy.

Pennsylvania- although shopping numbers dropped in 2008, the total load increased by 268 MWs. That reflects the increased commercial shopping, particularly in Penn Power and Duquesne Power.

Have a great day!