Electricity Market Update: September 2024
Electricity Market Update: September 2024
Commercial Matrix Rates Lower than Utility Rates
In September 2024, commercial matrix rates continue to offer a cost-saving opportunity for businesses compared to standard utility rates across various states. As energy prices remain volatile due to market conditions, businesses can significantly reduce their electricity costs by opting for competitive supply rates.
Key Highlights:
Connecticut (CT)
Utility: United Illuminating
Rate Class: GS
Best Matrix Rate: 10.078¢ (effective October 2024)
Utility PTC: 12.065¢
Savings Opportunity: Matrix rates offer nearly 2¢ savings per kWh compared to the utility rate.
Delaware (DE)
Utility: Delmarva Power & Light
Rate Class: GS
Best Matrix Rate: 8.154¢ (effective October 2024)
Utility PTC: 9.500¢
Savings Opportunity: Matrix rates are about 1.35¢ lower than utility rates.
Illinois (IL)
Utility: Ameren (Zone 1, 2, 3)
Rate Class: DS2
Best Matrix Rates: Range from 6.569¢ to 6.690¢ (effective October 2024)
Utility PTC: 8.136¢
Savings Opportunity: Up to 1.567¢ savings per kWh with matrix rates.
Utility: COMED
Rate Class: 0-100
Best Matrix Rate: 6.109¢ (effective October 2024)
Utility PTC: 6.900¢
Savings Opportunity: Matrix rates are approximately 0.79¢ lower.
Massachusetts (MA)
Utility: Eversource (NEMA, SEMA)
Rate Class: B2
Best Matrix Rate: 11.393¢ (effective December 2024)
Utility PTC: 15.770¢
Savings Opportunity: Over 4¢ per kWh savings with matrix rates.
Utility: National Grid (Massachusetts Electric)
Rate Class: G1
Best Matrix Rate: 11.760¢ (effective November 2024)
Utility PTC: 17.262¢
Savings Opportunity: Matrix rates offer a substantial reduction of over 5.5¢ per kWh.
Maryland (MD)
Utilities: Baltimore Gas and Electric, Delmarva Power & Light, PEPCO, Potomac Edison
Best Matrix Rates: Range from 7.635¢ to 9.260¢
Utility PTCs: Range from 11.140¢ to 14.220¢
Savings Opportunity: Significant savings opportunities with matrix rates being up to 6.6¢ lower than utility rates.
Pennsylvania (PA)
Utilities: Duquesne Light, METED, PECO, PENELEC, PPL, PennPower, West Penn Power
Best Matrix Rates: Range from 6.763¢ to 9.713¢
Utility PTCs: Range from 8.450¢ to 11.790¢
Savings Opportunity: Businesses can save up to 5¢ per kWh by choosing matrix rates.
New York (NY)
Utility: Con Edison
Rate Class: SC2
Best Matrix Rate: 12.325¢ (effective October 2024)
Utility PTC: 14.650¢
Savings Opportunity: Matrix rates are over 2¢ cheaper per kWh, offering notable savings for businesses.
Utility: National Grid (Upstate NY)
Rate Class: SC2
Best Matrix Rate: 7.980¢ (effective October 2024)
Utility PTC: 10.305¢
Savings Opportunity: Approximately 2.3¢ per kWh savings with matrix rates.
Ohio (OH)
Utilities: AEP Ohio, Dayton Power & Light, Duke Energy Ohio, Ohio Edison, The Illuminating Company, Toledo Edison
Best Matrix Rates: Range from 6.200¢ to 8.500¢
Utility PTCs: Range from 8.900¢ to 12.000¢
Savings Opportunity: Businesses can save up to 3.5¢ per kWh by switching to matrix rates, particularly beneficial in areas served by Ohio Edison and The Illuminating Company.
Texas (TX)
Deregulated Market: Texas continues to have a highly competitive energy market, allowing businesses to shop among numerous suppliers.
Rate Class: Various
Best Matrix Rates: Range from 5.500¢ to 7.200¢, depending on region and contract terms.
Utility PTCs: Generally higher, ranging from 7.800¢ to 9.500¢
Savings Opportunity: Texas businesses can enjoy substantial savings, with up to 2¢ difference in matrix vs. utility rates.
Maine (ME)
Utility: Central Maine Power
Rate Class: GS
Best Matrix Rate: 8.100¢ (effective October 2024)
Utility PTC: 12.560¢
Savings Opportunity: Matrix rates offer over 4¢ per kWh savings, a considerable reduction for commercial accounts.
Massachusetts (MA) - Cape Light Compact
Rate Class: G1
Best Matrix Rate: 10.900¢ (effective November 2024)
Utility PTC: 15.333¢
Savings Opportunity: A significant saving of 4.4¢ per kWh for businesses opting for matrix rates.
Maryland (MD) - Potomac Edison
Rate Class: G
Best Matrix Rate: 7.635¢ (effective October 2024)
Utility PTC: 11.140¢
Savings Opportunity: Businesses can save nearly 3.5¢ per kWh by switching to matrix rates.
Market Analysis:
September 2024 continues to present favorable conditions for commercial consumers to shop and compare rates, as matrix rates are consistently lower than standard utility rates across various states and utility providers. Businesses are encouraged to review their current electricity supply arrangements and consider switching to lower-cost matrix rates to optimize energy savings.
Natural Gas Impact: The price of natural gas, a major driver of electricity rates, has shown volatility due to supply chain disruptions and geopolitical factors. This directly impacts wholesale electricity prices, making it crucial for businesses to actively monitor market rates.
Renewable Energy Integration: Increasing renewable energy integration continues to influence rate structures. States pushing for higher renewable standards may see variability in rates due to intermittency and the need for backup generation, which can affect the supply-demand balance.
Regulatory Changes: Recent regulatory actions in several states aim to enhance market transparency and competitiveness, offering more opportunities for businesses to shop for lower rates. It's crucial to stay updated on any legislative changes that could impact contract terms and pricing.
Recommendations for Businesses:
Review Contract Terms Regularly: Rates can fluctuate; therefore, businesses should review their electricity contracts regularly to ensure they are still getting the best available rates.
Consider Short-Term Contracts: With market volatility, opting for shorter-term contracts can provide flexibility to take advantage of future rate drops.
Explore Renewable Options: Some suppliers offer competitive rates for green energy contracts, which might align with sustainability goals and offer additional cost benefits.
Utilize Energy Consultants: Working with an energy consultant can help navigate the complexities of the market and identify the most advantageous rates for your specific usage profile.
As of September 2024, electricity rates across the United States continue to experience fluctuations due to several key factors, including natural gas prices, regulatory changes, weather conditions, and market demand. Businesses in deregulated states are encouraged to stay updated on rate changes to optimize their energy costs, especially heading into the fall and winter months.
Key Factors Influencing September 2024 Electricity Rates
Natural Gas Prices: Natural gas remains a major driver of electricity rates. In September, prices have seen a slight increase due to heightened demand and decreased storage levels compared to the previous year. This trend is likely to impact wholesale electricity prices, especially in regions heavily reliant on natural gas for power generation.
Weather Conditions: Above-average temperatures in early September have contributed to sustained high electricity demand, particularly in the Southern and Midwestern states. The ongoing heat waves have led to increased cooling needs, straining the grid and pushing rates higher in some areas.
Regulatory Changes: Ongoing regulatory changes and updates, including policies aimed at reducing carbon emissions, continue to influence electricity rates. States with aggressive renewable energy targets may see rate adjustments as utilities invest in clean energy infrastructure.
Grid Reliability and Maintenance: Scheduled maintenance and unexpected outages have affected grid reliability in certain regions, leading to rate increases to cover higher operational costs. Businesses in Texas, California, and parts of the Midwest should monitor these developments closely.
Regional Insights
Northeast: Electricity rates in the Northeast, including New York, Massachusetts, and Connecticut, remain relatively stable but are trending slightly upward due to increased natural gas costs and ongoing grid maintenance. Businesses in these areas should compare supplier rates to secure better deals before winter.
Midwest: Rates in the Midwest have seen a moderate increase due to higher natural gas prices and sustained demand from agricultural and manufacturing sectors. Illinois and Ohio continue to offer competitive rates, but businesses are advised to review their contracts to avoid unexpected costs.
South: The Southern states, including Texas and Florida, have experienced higher electricity rates driven by continued hot weather and increased cooling demand. The ERCOT grid in Texas has managed to avoid significant outages, but prices remain elevated due to high demand and natural gas price volatility.
West: California and the Pacific Northwest face some of the highest electricity rates in the country due to a mix of regulatory pressures, renewable energy mandates, and grid reliability concerns. California's rates have seen a slight increase in September, particularly affecting commercial customers.
Outlook for the Rest of 2024
Winter Demand: As the weather cools, electricity demand for heating is expected to rise, potentially increasing rates further in regions reliant on natural gas. Businesses should consider locking in rates now to mitigate the impact of winter price spikes.
Renewable Integration: The ongoing integration of renewable energy sources is expected to continue influencing rates, with periods of low solar and wind generation likely causing short-term price increases.
Energy Efficiency: Businesses should focus on energy efficiency measures to manage costs, particularly as rates are expected to remain volatile.
Recommendations for Businesses
Compare Rates: With electricity rates fluctuating, businesses in deregulated states should regularly compare supplier offers to ensure they are getting the best available rates.
Lock in Contracts: Consider locking in fixed-rate contracts now to avoid exposure to potential rate increases during the winter months.
Monitor Market Trends: Stay informed about market trends, regulatory changes, and weather forecasts to better anticipate future rate movements.
Staying proactive and informed about market changes can help businesses effectively manage their electricity costs in the coming months. For personalized assistance in comparing rates and securing the best contract terms, consider consulting with energy professionals.
For detailed rate comparisons and guidance on selecting the best electricity supplier for your business, contact your trusted energy advisor Bid On Energy.