Energy Cost Comparison

 

 

 

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                              Amounts after August '09 are projections.

Peregrine Energy has a dedicated staff that studies and tracks both natural gas prices and electric utility rates. They have studied the pricing volatility of both natural gas and electric rates and charted their relationship over the last five years. The following chart reflects these findings. Note that electric rates have been converted to the equivalent natural gas units for comparison purposes. The electric rate price represents the off-peak rate.

As you can see, electric rates have remained relatively stable over the last five years with only minimal increases. These increases have primarily been annual fuel adjustments which were driven by oil and gas volatility. On the other hand, natural gas prices have been volatile, reacting to various market and environmental factors.