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A Q&A with Tony Barnhart, Vice President of Retail Energy Markets - World Energy Based in World Energy’s Dublin, Ohio offices, Tony plays a strategic role in identifying and servicing the retail energy needs of Ohio customers. Tony brings expertise earned over two decades in the Ohio energy markets. He prides himself on the insights he can share with his customers and the benefits he helps deliver them. Tony can be reached at tbarnhart@worldenergy.com or (614) 553-6713. What is the significance of Duke Energy’s Energy Security Plan for Ohio businesses? In January 2009, Duke Energy implemented an Energy Security Plan that established default rates for Duke Energy customers. The default service energy rate changes each calendar year and includes a Fuel and Economy Purchased Power Rider that changes quarterly based upon Duke’s periodic energy purchases. Due to wholesale power prices that are at record lows, retail suppliers are now able to offer rates lower than the default rates. This means, for the first time in several years, energy consumers have a real opportunity to beat the current default/utility rate on electricity, an opportunity that can translate into major cost savings for savvy buyers. But Ohio businesses need to act quickly. Due to the volatile nature of the wholesale power market, this opportunity could be short-lived. How can businesses in the Duke Energy service territory best take advantage of the new rate structure? I can’t stress this enough: Businesses can and should “shop” their electricity load amongst retail energy suppliers for lower price opportunities now. One of the most efficient methods of shopping for and procuring electricity is via the World Energy Exchange®. By using World Energy’s proven process, which is delivering cost savings today to Ohio electricity buyers throughout the Duke Energy service territory, buyers can tap our market expertise and network to bring together multiple suppliers to compete for their business. What common mistakes should electricity buyers look to avoid? Avoid accepting the first offer of rate savings versus the default rate. Businesses may receive an offer from electricity suppliers that’s lower than what their utility may provide, but how do they know it’s the best rate for their load without market intelligence and proven methods for generating competitive prices? Several companies that have utilized the World Energy Exchange have already contracted at rates lower than those that were originally offered. Why is a guaranteed savings from Duke’s tariff not always the best offer? Duke’s Energy Security Plan includes a Fuel Rider component that changes every quarter based upon Duke Energy’s wholesale market purchases. During the first two quarters of 2009, the Fuel Rider averaged approximately 60% of the total generation rate. As a result, with the wholesale market at historic lows and the ability for Duke to pass along market increases in the Fuel Rider, a guaranteed discount from the tariff will expose customers to fluctuations in their future power costs. If you assume that power prices will move up from their current record lows, customers could see a dramatic increase in their electric costs in spite of realizing a “savings” against utility pricing. Why should Ohio energy buyers consider engaging with World Energy instead of remaining with the utility? The short answer is we are already helping your peers across vertical markets, including manufacturing, health care, real estate, and higher education, seize this market opportunity and save money. We want to help you, too. The longer answer is we are already a trusted name in Ohio, and know and understand this market. We have been active here since 2001; with a team based right here in Dublin, successfully transacting natural gas for hundreds of customers, many of them national or regional brand names. The World Energy Exchange is a commercially proven, award-winning online platform that gives retail energy buyers the advantage when procuring their electricity. We are energy procurement experts who possess effective methods for ensuring that energy-intensive businesses obtain very competitive, least cost sources of electricity and natural gas. Furthermore, the buyer, our customer, retains complete control over the decision making process, so there’s no pressure to transact. What do you see ahead for the Ohio electricity and other energy markets? Businesses will need to stay on top of ongoing changes within the deregulating energy marketplace or engage leading-edge companies like World Energy for market intelligence, expertise and future monitoring of the shifting competitive landscape. As we’ve seen, particularly in the past year, energy markets are incredibly volatile and can move without notice or for unexplained reasons. Due to the uncertainty surrounding these markets, energy buyers can no longer employ the same energy procurement methods and strategies of the past. If they do, consider it an opportunity lost.
World Energy is author of this article on Renewable Portfolio Systems. Find more information about RPS here.
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