Ecom-Energy’s November 2018 Natural Gas Market Update

Despite low storage levels, the hashtag#EIA expects strong growth in U.S. natural gas production to put downward pressure on prices in 2019. Meanwhile, a warm winter forecast through the New Year is keeping price hikes at bay in the short term.

EIA Natural Gas Storage Report: November 1, 2018

LNG Limited has delayed its investment decision of the Magnolia LNG export terminal in Louisiana due to China’s 10% tariff on U.S. LNG, which took effect September 24, 2018. It will be escalated to 25% in January 2019, in retaliation to U.S. tariffs. The company is hoping trade wars will settle in 2020 and will then reevaluate the multi-billion dollar project.

Solar Interconnection Applications on the Rise

As the U.S. solar industry enters Q4 2018, a record number of solar interconnection applications are anticipated before year end at the request of anxious commercial customers focused on getting their projects built and turned on during fiscal year 2019. Strong pick-up in commercial solar demand is attributable to the following three economic considerations that will be in play during calendar year 2019:

  1. The 30% Investment Tax Credit (ITC) Steps Down After 2019
  2. Net Metering 3.0 Will Likely Take Effect by 2020
  3. Interest Rates are Rising

Aliso Canyon Winter Technical Report

Curtailments may not but likely, but it’s important to remain cautious. While weather will be the primary driver, gas price increases will be the end result.

Time-of-Use Adjustments

The increasing prevalence of solar energy in California is leading to very cheap electricity when the sun is shining brightest. Consequently, peak periods are shifting to later times in the day as the sun goes down and solar production decreases.

AB-802: California Benchmarking Mandate Deadline Is June 1

Assembly Bill 802 directed the California Energy Commission (CEC) to create a statewide energy benchmarking and public disclosure program for buildings larger than 50,000 square feet. The CEC’s regulations require healthcare facilities to report building characteristics and energy data to the CEC by June 1, 2018. Reporting is done annually using ENERGY STAR Portfolio Manager.

Administration Endorses Energy Benchmarking

As an industry leader in utility benchmarking efforts and certified ENERGY STAR Partner, Ecom-Energy’s EnerVisor Software is designed to accomplish the very goals set forth by the Administration in Executive Order 13834.

An Update on Assembly Bill 3232

On May 25, the bill passed out of appropriations, but thanks to your engagement, the bill will be amended to include ratepayer safeguards, cost effectiveness evaluations, and legislative oversight.