Kree Works

Energy

Kree Works understands the deregulated electricity marketplace and represents a myriad of electrical and gas suppliers  in order to provide our customers with the most cost effective electrical & natural gas pricing programs based on your needs.  From small businesses to large multi-facility corporations, Kree Works can develop the right plan with you to provide both cost efficiency as well as long term effectiveness.

Kree Works helps organizations achieve significant cost savings in deregulated electricity and natural gas areas.  Kree Works utilizes a host of suppliers to provide our clients with the most cost effective energy (electricity and gas) program available in the market.  Since we are not affiliated with utilities or suppliers, we are not obligated to any one company – allowing us to create competition among suppliers to serve your natural gas and electrical needs.  

Natural Gas Pricing

Natural gas accounts for almost a quarter of United States energy consumption, and the NYMEX Division natural gas futures contract is widely used as a national benchmark price. The futures contract trades in units of 10,000 million British thermal units (mmBtu). The price is based on delivery at the Henry Hub in Louisiana, the nexus of 16 intra- and interstate natural gas pipeline systems that draw supplies from the region’s prolific gas deposits. The pipelines serve markets throughout the U.S. East Coast, the Gulf Coast, the Midwest, and up to the Canadian border. 

Consumption & Production of Natural Gas

Natural Gas Consumption by Sector

Natural Gas Real Prices by Sector

Current Distribution of Total Energy in US

 

 

So What About Electricity & Gas

In the current environment, much of the deregulation has been left to the individual states.

Although the deregulation of this particular area has not been exactly the same as the long distance market, there are some significant similarities.  Electricity and gas are capital intensive businesses much like the long distance business was.  Pipelines, utility poles and transmission lines, etc. come with a significant cost.

As a result of the significant capital involved in both the Electrical and Gas Markets, the Federal Government split the these markets into two areas: Product – Electricity and/or Gas

Delivery of Product – Transmission and/or Pipelines

Deregulation only effects the Product side of the business which is approximately 50% of your energy bill.  Both electricity and natural gas are treated as commodities and prices fluctuate every day much like the price of oil.

As the Chart depicts below, Commercial Electrical rates have been increasing over the last decade.  Although rates lowered during the last couple of years due to cheap natural gas, rates are on the climb again.  One major reason… with increase demand we need more generation, so create greater investment motivation with higher rates.