Commerce Energy

Market Info

Natural Gas

The nature of the natural gas market is similar to other competitive commodity markets: Prices reflect the ability of the supply to meet demand at any one time. The economics of producing natural gas are relatively straightforward.

When demand for natural gas rises, prices rise accordingly. Producers respond by increasing their exploration and production capabilities. As a consequence, production over time will tend to increase to match the stronger demand.

Why do Natural Gas Prices Increase?

Forecasts suggest that natural gas prices will track higher than the historical average due to the following factors:

Natural gas is a nonrenewable resource, and is no longer in surplus.
The natural gas market will see the same shortages that have governed the oil market for
25 years.
The long-term price trend is up, and the demand for natural gas continues to grow each year!

We Guarantee Our Rates

While your Local Distribution Company forecasts commodity charges and estimates the price of your natural gas to determine your rate and that rate fluctuates, if you choose a fixed rate plan with Commerce Energy, you will receive a guaranteed fixed rate during the entire duration of your term.

Electricity

The nature of the electricity market is similar to other competitive commodity markets: Prices reflect the ability of supply to meet demand at any one time. The economics of producing electricity are relatively straightforward.

When demand for electricity rises, prices rise accordingly. Generators respond by increasing their production capabilities. As a consequence, production over time tends to increase to match demand.

Electricity prices are determined by the competitive forces of supply and demand. The short-term or spot price can fluctuate significantly from day to night, season to season, weekday to weekend. For instance, if one generation facility is out of service in the middle of a heat wave, our demand for electricity can exceed the supply capacity. We then have to import electricity from neighboring regions, which affects the short-term price of electricity.

Longer-term electricity prices are determined by factors like population and economic growth, and environmental policies.

Although you are purchasing your energy from Commerce Energy, you will still receive your bill from your Local Distribution Company (LDC), and they will continue to provide you with 24-hour emergency services.

California Electric Service – Direct Access

The California Public Utilities Commission has temporarily suspended the electric Direct Access program to Residential Customers. As a result we can only provide electric service to existing Direct Access customers. If you are a Commercial customer you may take advantage of a partial re-opening of the Direct Access program that will take place in April 2010. The utility will accept Notice of Intent forms from a limited amount of Commercial customers between April 16, 2010 and June 14, 2010. Please contact your utility for further information or visit their website. For Pacific Gas & Electric visit http://www.pge.com/mybusiness/customerservice/energychoice/directaccesselectricity/index.shtml, for Southern California Edison visit http://www.sce.com/b-db/esp/SB695.htm, for San Diego Gas & Electric visit http://www.sdge.com/business/directaccess/index.shtml.

We are hopeful that changes will be made to the Direct Access program in the near future that will enable Commerce Energy to provide this service to all California customers. For more information contact our customer service department at 1-800-556-8457 or visit the California Governor’s Division of Ratepayer Advocates website at http://www.dra.ca.gov/DRA/energy/Direct+Access.htm.

Did You Know?

Up to 85 percent of the natural gas used in America is produced from wells right here at home? More than 95,000 miles of refined product pipeline crisscrosses the nation, bringing natural gas from the well-head to you - so much pipeline, it can take upwards of three weeks for it to travel from a refinery in Houston to a distribution center near New York City.

Supply and Demand

The available natural gas supply and the demands on that supply - particularly due to seasonal needs - have direct impact on your bill. When surpluses are high, it's a good time to lock in a more competitive rate.

Drop in the Bucket?

A hot water faucet leaking one drop per second wastes 160 gallons of hot water a year!

Money to Burn?

Fireplaces account for 14% of a typical home's heat loss.

Bright Ideas

Even better, use compact fluorescent light bulbs. They cost more than old fashioned light bulbs, but can use 75% less electricity and last longer. One compact fluorescent bulb can save you several times its cost in electricity.

Cooling Off

Turn off the AC when you leave for the day. Contrary to popular belief, this method uses less electricity than having the AC constantly maintain a cool temperature! Your savings can easily pay for the cost of a thermostat (as little as $50) in the first year by varying the temperature just a few degrees at night or when you're away. Just think of the savings over 5 or 10 years!

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