July 2021 - Quarterly Market Letter
On behalf of the team at 5, I am pleased to forward our market letter for the second quarter of...
The energy regulatory landscape in America includes many confusing rules and regulations that parallel the extensive amount of natural gas and electric utilities across the country. Embedded in the messiness is an ongoing jurisdictional conflict between local Regional Transmission Organizations (RTOs) and the federal government. Even the various states have clashed with one another as many try to implement their own renewable portfolio standards and adjust the market rules of the RTOs in the process. All of this adds up to a constantly changing set of energy-related regulations.
For clients, frequent changes to these rules create a potential risk as these modifications can affect the cost components in retail electricity and natural gas contracts. It is especially important for clients with facilities in multiple parts of the country to be aware of the regulatory forces and risks that exist for all their properties.
5’s regulatory experts advise clients by helping them understand the risks in different utilities and RTOs and by recommending strategies to mitigate these risks. There are literally dozens of energy policy initiatives being debated across the country at any given time. And while many of these initiatives have the potential to significantly increase energy costs, few clients have the time or resources to stay on top of them.
5’s goal is to provide the regulatory advice clients need to make good energy decisions. This includes a careful examination of energy contract language and identification of cost components that are sensible to pass through rather than paying significant premiums to fix due to regulatory uncertainty. Potential regulatory risk and the mitigation of that risk are also significant drivers behind 5’s supplier and product recommendations.
Contact Us to learn more about how 5’s nationwide regulatory advice can help your business make better energy decisions.