Energy News

April 20th, 2015

Executive Market Summary


The EIA reported a storage injection of 63 Bcf on Thursday (for the week ending April 10). This injection was about 4 Bcf larger than expectations and brought the deficit to the five year average down to 173 Bcf. Storage currently sits 692 or 81.7% above last year’s levels.

According to CenterPoint, the mild weather has taken off both heating and cooling loads across the country. This helped lead us to the bearish storage injection which came in well above both last year and the five year average. This week’s forecast is also rather mild for the most part but there is a chance some eastern states may need their heaters!

Year to date power burn for 2015 has averaged 22.2 Bcf/day – 3 Bcf/day higher than in 2014 and 2.4 Bcf/day higher in 2013. Platts notes that this is important because under a nuclear outage situation, power burn could be even higher as natural gas is the choice fuel to make up for lost generation. Bentek Energy expects power burn to average 27.8 Bcf/day this summer.

Weather Forecast (WSI)

LNG Export Terminals Update

Cheniere, Corpus Christi, TX – Approved by the Federal Energy Regulatory Commission (FERC), the plant is expecting to begin operations in late 2015 with commercial service in 2018

Cheniere’s Sabine Pass LNG, Sabine, LA – This four train facility received approval from FERC to export 2.2 Bcf/day and is scheduled to enter into service by late 2015 and bring full capacity online by 2016.

Cameron LNG, Hackberry, LA – This facility will be capable of exporting 1.7 Bcf/day and operation is expected to begin in 2018

Cove Point LNG, Cove Point, MD – This single train facility will have a capacity of 0.82 Bcf/day and begins operation in late 2017

Freeport LNG, Freeport, TX – With a 1.8 Bcf/day capacity is scheduled to begin commercial service in 2018

Expansions are also in the works for Sabine Pass and Cameron LNG’s capacities which would add an additional 2.7 Bcf/day (combined) capacity if approved.

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April 15th, 2015

ISNet World Connect – Annual Conference


Bill Clinton

As a member of ISNetworld, Rapid Power attended their 2015 ISN Connect on April 9th and 10th in Grapevine, Texas.

ISN is a global resource for connecting Clients with safe and reliable contractors.   Rapid Power utilizes ISN as a clearinghouse to maintain our safety, insurance, quality and regulatory information as a one-stop-shop.  As one of our core-values, Rapid Power ‘Strives for Excellence’ and investing with ISN is an excellent way to verify to our clients that safety and compliance is a top priority!

Mike Bowman and Christa Taylor were both in attendance to hear ISN’s Keynote Speaker, Bill Clinton.

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April 14th, 2015

RPM’s Spring Outing


L to R: Crystal, David (on phone), Christa, Katie (front), Mike and JD. Not Pictured: Jonathan, Jared and Kristi


Every Spring and Fall, Rapid Power Management shuts down* for the day for a little team-building and fun! Yesterday, the team had lunch at Meso Maya downtown and headed to the Perot Museum to check out the Tom Hunt Energy Hall.


*As you can see, David is on the phone in the photo. We may head out for the day, but we never put customer issues on the back burner!

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April 14th, 2015

RPM Partners With Champion Energy Services to Offer Residential (TX Only) Referral Program

Over the past 13 years, Rapid Power Management has built a strong reputation as a trusted energy advisor to our clients and we often receive inquiries about residential rates. For this reason, we’ve elected to move forward with a referral program through one of the highest ranked providers in Texas.

Champion Energy Services consistently offers low residential rates while providing excellent customer service. In fact, Champion has been ranked highest in customer satisfaction by J.D. Power and Associates for many years.  Maintaining the highest level of service is very important to us at RPM, which is why we chose Champion as the inaugural residential service provider.

To review residential rate options for Texas, look no further than RPM’s website. Simply click the red button on the footer of our home page for more information and to get rates for your home address.

Resi Button

In addition to competitive rates and first class service, Champion’s bills are easy to read and they even provide weekly home energy reports directly to your inbox! See example below.

Weekly Overview

Visit today and start saving at home!


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April 13th, 2015

Executive Market Summary

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Nymex futures (May – Settled at $2.528/MMbtu) hit a 33-month low after the storage report was released on Thursday morning. Expectations of a 9-13 Bcf injection were exceeded by a 15 Bcf injection – the second injection of the season. This compares bearishly against the storage withdrawal of 8 Bcf last year and the five year average withdrawal of 2 Bcf. Storage still remains above last year’s levels but below the five-year average.

As mentioned last week, we are currently in the shoulder months where temperatures become a little less important to price because it is relatively mild across the entire US. The NOAA is predicting normal to above normal temperatures for the next two weeks.

New data was released from Bentek and 8,900 MW of capacity is set to retire by the beginning of June. More than half of this load lies in the Northeast. Retirement of coal generators coupled with the coal-to-gas switching (due to price declines for natural gas) could be an issue for NE power demand this summer. NE power demand hit 5.1 Bcf/day – 0.9 Bcf/day higher than last year and 0.3 Bcf/day higher than the previous record set in March 2012.

Los Ramones natural gas pipeline is a large pipeline project to move gas farther into Mexico. Phase I of the project, which went into [limited] service in 2014, will have the capacity to deliver 2.1 Bcf/day of natural gas from the Eagle Ford Shale (TX) into Northeastern Mexico. The 70 mile pipeline is expected to be complete (Phase II) in mid-2016. Exports to Mexico are expected to increase as demand from Mexico’s electric power sector grows. Mexico’s Energy Ministry projects that US exports to Mexico could reach 3.8 Bcf/day by 2018 (Source: EIA).

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April 10th, 2015


Flexible Film and Bag Conference SMALLER

For more details and to register for the conference please click here.

To learn more about the speakers click here.

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April 9th, 2015


Universal Air Conditioner, known as UAC, is a supplier of automotive and truck air conditioning parts located in Mansfield, TX. UAC has been recognized as a leader in the automotive industry for more than 26 years.

Being a leader in any industry takes a company willing and dedicated to making innovative decisions. UAC made an innovative decision in regards to energy consumption in late 2014 by hiring Rapid Power Management to update its warehouse lighting. They were able to cut annual kWh usage for lighting by 67% – the warehouse lighting was outdated, dim, and provided an unproductive work space for employees.

“Besides reduction in our energy costs, the LED lighting upgrade has had many benefits for our warehouse. We have improved accuracy and efficiency or our operations due to the lighting clarity compared to our old metal halide system.” Isaias Chapa, Warehouse Manager
“Besides reduction in our energy costs, the LED lighting upgrade has had many benefits for our warehouse. We have improved accuracy and efficiency for our operations due to the lighting clarity compared to our old metal halide system.” Isaias Chapa, Warehouse Manager

Rapid Power Management replaced 217, inefficient, 400-watt metal halides, a common fixture in older buildings, with a more efficient, 180-watt Philips high bay LED lamp.

Savings II


This fixture swap brought kWh usage down by 67% and will save Universal Air Conditioner $15,995 annually on electricity bills. Upgrading to LED lighting not only helps your electricity bill, it helps curb maintenance costs as well. LED’s have an extremely long life which means replacing bulbs becomes an uncommon occurrence.

“Our employee safety is goal one. The new LED lighting system installed by Rapid Power Management has led to safer forklift operations in the aisles.” Isaias Chapa, Warehouse Manager
“Our employee safety is goal one. The new LED lighting system installed by Rapid Power Management has led to safer forklift operations in the aisles.” Isaias Chapa, Warehouse Manager
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April 6th, 2015

Executive Market Summary

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Thursday’s storage withdrawal was very likely the last of the season. It followed our first injection of the year and came in at 18 Bcf. This was higher than the 9-11 Bcf withdrawal expectation but because of the warm weather, prices shouldn’t respond negatively for long. As Aaron Calder, senior market analyst at Gelber and Associates stated, the draw should cap off the withdrawal season and make way for strong production (Platts).

Temperatures become a little less important as we head into shoulder months* and pricing tends to now correlate with the amount of gas used during the shoulder season/the amount of gas injected into storage.

The Mercury Air Toxins Standard or MATS went into effect on April 1. Bentek expects that about 6,400 MW of coal generation will be retiring this month alone. We will continue to keep an eye on that. Because of the relatively low gas prices and the mild weather coupled with EPA regulations forcing coal plants into retirement, natural gas demand is rising. From Platt’s gas daily on Thursday, March 2, they explain that demand is expected to increase anywhere from 6-9 Bcf/day over last year’s levels.

On the long term, further EPA regulations loom including the Clean Power Plan to reduce carbon dioxide emissions from power plants and the decision to reduce methane emissions. Another few factors to note: The Los Ramones pipeline will connect Mexico City with growing gas supplies from the Eagle Ford, Marcellus and Utica shales by mid-2016. Additionally, because natural gas can be a by-product of oil drilling, it can be expected that production may suffer due to the plummeting oil prices.

*Shoulder Months: Normally defined as spring and fall months when energy demand is lowest. In the natural gas industry, the summer season is considered to run from April through October. The winter season is considered to run from November through March. From CenterPoint Energy.





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March 30th, 2015

Executive Market Summary

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The 12 Bcf storage injection on Thursday was the first injection of the season.  This injection compares quite bearishly against the 56 Bcf withdrawal from last year and the five year average withdrawal of 19 Bcf. Storage currently sits 63.6% or 575 Bcf higher than last year and 11.6% or 194 lower than the five year average.

Weather remains normal to above normal in most parts of the United States through April 5. The Northeast is expected to see some cooler than normal temperatures before shifting warmer.

The Mercury Air Toxics Standard (MATS) goes into effect next month. Demand for power is averaging 3.8 Bcf/day higher than in March 2014. This increase is attributed to coal to gas switching due to low gas prices and the MATS compliance deadline. Data from Bentek shows that 6,400 MW of coal generation will be retiring in April.

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March 25th, 2015

Atmos Transportation Customers Can Expect Invoices to Increase Come June

Any customers transporting with Atmos will see increases on a few line items on their invoices come June 1. Final charges are not known as the rates are still under regulatory review. Atmos has proposed the following increases:

Current Proposed Percentage Increase
Monthly Customer Charge per Meter $665.00 $714.50 7.44%
Monthly Regulatory Surcharge $4.80 $4.80 0%
Monthly Comsumption Charge per MMBtu per Meter:
First 1,500 $0.1570 $0.1789 13.95%
Next 3,500 $0.1142 $0.1301 13.92%
All Additional $0.0181 $0.0206 13.81%

A decision will be made in late May in time for the increase to be reflected on the June invoices. View the Atmos letter here.

If you have any questions or concerns, please contact your Energy Manager.

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