Tradition Energy Warns of Double-Digit Rate Increases Ahead for Electricity Supply
Posted on: Monday, 12 May 2008, 06:00 CDT
STAMFORD, Conn., May 12 /PRNewswire/ -- Tradition Energy, a full-service energy management advisor and one of the nation's largest energy procurement firms, advises power customers to expect big rate hikes in the price of retail electricity in the coming months.
"Natural gas and coal account for over two-thirds of the fuel used for power generation in the United States, and a number of factors in the wholesale energy market are driving the prices for these generation fuels higher and higher," comments Addison Armstrong, Director of Market Research and CNBC contributor. "An expected decrease in imports of liquefied natural gas, coal shortages in Europe and China, the potential for a very warm summer, and low levels of natural gas in storage in both the U.S. and Canada are all putting upward pressure on prices."
Rate hikes are forthcoming across the country, expected to be as high as 41% for commercial customers in some states by the end of the summer.
"Customers in regulated areas will have no choice to but pay the rates set by their utility," says Armstrong. "Organizations in deregulated areas have the option of shopping around for the best power supply options, and it's imperative that they do so. Decision makers also need to consider hedging against rising fossil fuels costs by purchasing energy generated from renewable resources and investing in improved energy efficiency measures."
Tradition Energy works with commercial, industrial, and governmental organizations in both regulated and deregulated energy markets across the country to help manage energy costs.
About Tradition Energy
Tradition Energy is one of the nation's largest energy procurement advisors, helping commercial, industrial and governmental organizations manage electricity and natural gas costs in volatile deregulated energy markets. Tradition Energy is a division of TFS Energy, a top wholesale energy brokerage companies with eight offices worldwide, over 200 employees and in the energy business since 1985. TFS Energy was recently awarded 14 awards, more than any other company in the 8-year history of Environmental Finance magazine's industry survey. TFS is a subsidiary of Compagnie Financiere Tradition (CFT), a leading global inter-dealer broker in financial and commodity-related products with a presence in 24 countries and over 2,200 employees. For more information, please visit http://www.traditionenergy.com/
Tradition Energy
CONTACT: Jennifer Santiago of Tradition Energy, +1-713-609-9927,jsantiago@traditionenergy.com
Web site: http://www.traditionenergy.com/
Source: PRNewswire
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