Dealing With the Supply-And-Demand Conundrum


We’ve already talked about how pricing is going to be a major energy-related trend you’ll need to keep your eye on during 2017, but let’s dig a little deeper. What else are you going to need to be aware of? And what are some other strategies you can implement immediately to deal with the pricing challenges that might arise from these issues? We sat down with our energy partners to find out a little more about what’s impacting energy prices and what small . Here’s what they had to say ...

Power Capacity

One thing to watch for is an expected increase in natural gas usage for electricity generation. This will be primarily caused by new combined cycle gas power plants coming online. At the same time, we expect to see an increase in the retirement of inefficient coal generation plants and possibly nuclear plants as well. Renewables are also projected to grow at a record pace.

In addition, a strong Marcellus and Utica gas production may help balance the supply-and-demand equation. That said, natural gas pipeline expansion could divert enough gas from the region to diminish the current gas glut. This would, in turn, put upward pressure on natural gas prices.

What This Means For You

So, if prices do rise, what can you and your business do to mitigate that impact and meet their energy needs in a cost-effective manner? Our energy partners suggest executing fixed-price contracts based on the recommendation of a reputable, independent consultant who has existing relationships with numerous energy suppliers.

It bears repeating: These are complex issues and you do not want to go it alone. It’s imperative your consultant understands your goals and expectations, including but not limited to your aversion to business risk, budget certainty and green power needs, just to name a few. A reputable consultant will consider your historical usage profile as well as expected changes in your business that could trigger pricing adjustments during the contract term.

Find a Partner

Lucky for you, COSE’s Energy Team has numerous relationships in place with knowledgable, experienced partners who can help guide your energy strategy. For more on how our Energy Team can help your business, watch Roseann Vandevender of Marigold Catering talk about the savings she has acquired from enrolling in the COSE Natural Gas Program.

COSE members have access to several programs designed to ensure you’re maximizing your energy. Contact us at 216-592-2205 or to learn more.