NuEnergen

The Electricity Market – Our Perspective

The overall direction of the commodities markets has changed very little over the last few months, with prices continuing to fall for most terms driven by weak demand, a weak economy and uncertainty regarding the potential for a turnaround in the short-term.

Natural gas prices started off in January at $5.971 for the prompt month and they are now at $3.54. This continued decline has resulted in the lowest prompt settle since September 2002. The weak economy continues to suppress demand, while domestic supply output continues to be robust.

Electricity prices in Zone J in New York continue to follow natural gas prices and have reached the lowest levels since 2005. Prices for the balance of 2009 and Calendar 2010 are at the market low over the past four years, with the balance of 2009 in Zone J currently sitting at $54.14 around the clock (ATC).

So—Where We’re Going? The summer power prices have dropped tremendously over the last three months, with July and August 2009 currently trading under $80 for On-Peak. To put this into perspective, the last time Day-Ahead prices in the July-August timeframe in Zone J were under $80 was back in 2004. However, Calendar 2010 and beyond carry the most upside risk when it comes to forward prices due to potential economic recovery, declining rig counts and possible production cuts. While there could be further decline in the prices for 2009 and 2010, the upside risk is far greater than the downside potential.

The economy remains the primary market driver causing prices for 2009 to be the lowest in more than five years and making a near-term rally very unlikely without a major market surprise. Based on one’s appetite for risk, there is strong justification for executing buys at current levels and buyers should consider all terms contingent upon their ability and willingness to buy long-term.

The future of the economy also remains one of the biggest questions in terms of whether or not the market has hit the bottom or if there is more downside potential. In addition, factors such as reduced drilling activity and demand increases, along with weather, geopolitical events, natural disasters and market surprises could incite a rally in prices.

NuEnergen awarded 25MW Demand Response contract from U.S. Navy

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--NuEnergen, LLC announced today that the United States Navy, through the Defense Energy Support Center (DESC) has awarded a 25MW Demand Response services agreement to NuEnergen, LLC for the Norfolk, VA based Mid-Atlantic Fleet facilities. “NuEnergen has been working with the DESC over the past several months to demonstrate our broad capabilities in both Demand Response and in Energy Sourcing services and we are very proud that they have selected us after considering several alternatives,” said Kevin Hamilton, CEO of NuEnergen. Hamilton added, “NuEnergen has been investing heavily in infrastructure required to support large Demand Response clients as the need for real-time data to reduce consumption and increase efficiencies in the national grid become a reality.”

“The DESC encourages federal and military installations to do their part to use energy more efficiently, and Demand Response programs are a great way to meet that objective,” said Larry Fratis, Head of the Electricity Branch for DESC. “Demand Response is a solution that makes good business sense while delivering positive community and environmental benefits through increased efficiency and reliability of the electric power system.”

If you would like more information about the Demand Response or Energy Sourcing services that NuEnergen offers, you can send an email to info@nuenergen.com, call us at 866-977-0901 or visit our website at www.nuenergen.com.

About NuEnergen

NuEnergen is an Energy Consulting and Services provider headquartered in White Plains, NY, focused on reducing energy costs and providing sustainability programs for Global 2000 clients.

NuEnergen’s Director of Client Services, John Carmichael, Recognized for his Contributions to the Tailhook Association

John Carmichael, NuEnergen’s Director of Client Services, recently learned of his nomination for Honorary Tailhooker of the Year.

The Tailhook Association represents the current and historical interests of Tactical Naval Aviation. As the name implies, members are mostly comprised of Naval Aviators who have served aboard aircraft carriers. The Tailhook Association is an independent, fraternal, nonprofit organization internationally recognized as the premier supporter of the aircraft carrier and other sea-based aviation.

The purposes of the Association are: to foster, encourage, develop, study, and support the aircraft carrier, sea-based aircraft, both fixed and rotary wing, and aircrews of the United States of America; and to educate and inform the public in the appropriate role of the aircraft carrier and carrier aviation in the nation's defense system.

Two years ago, John approached the Executive Director of the Tailhook Association, Capt. JR Davis about leveraging a new form of communication via the internet, creating a blog to share news, information, stories and other relevant information in a flexible, far reaching format. After the presentation, JR was sold on the idea and quickly issued the order… “Make it Happen!”

John then proceeded to design, build, and implement the “Tailhook Daily Briefing” the association’s blog. Not only did John create the Daily Briefing, he has continued to serve as editor, writer and photographer for the blog. John’s knowledge of the internet and Naval Aviation communities has allowed him to recruit other writers for the Daily Briefing providing first hand articles by those who are on the tip of the spear, both today and in our historic past.

In the two years since creating the Daily Briefing, the blog has received more hits and has been read by more people than the original Tailhook website has in the past 4 years; successfully exposing tens of thousands of new readers per year to the rich heritage of Naval Aviation.

In his tenure at The Daily Briefing, John has written over 300 articles ranging from the Care and Outreach of a Squadron (VFC-13 the “Saints”) to a fourteen year old in Grand Junction Colorado with testicular cancer, to the recent commissioning of the aircraft carrier USS George H.W. Bush (CVN-77). These articles along with numerous others have received national attention being linked to by countless mainstream news and information sites.

For his efforts, John learned recently that he has been nominated for Honorary Tailhooker of the Year. He will learn if he has indeed been selected for this prestigious honor at this year’s National Convention held in Reno in September.

John’s affiliation with Naval Aviation began with is birth. His father, RADM E.I. “Hoagy” Carmichael (USN Ret) is a 33 year career Naval Aviator, with a history in the Navy that includes commanding an A-6 Intruder Squadron (VA-115) during the Vietnam War, and later commanding an entire Airwing (CVW-15) followed by his assignment as Commanding Officer of the USS Midway (CV-41) home ported in Yokosuka Japan. Eventually Admiral Carmichael commanded the 11^th and 12^th Naval Districts (California, Arizona, Nevada) and then in the mid 80’s served as Commander Fleet Air Western Pacific, and Commander Naval Forces Japan, retiring in 1988 to his current home in Jacksonville FL where he lives with his wife Jo.

This life gave John a front row seat to the history of Naval Aviation for over 20 years. Originally John’s plans were to follow in his father’s footsteps by joining the Navy after college and attending Air Officer Candidate School in Pensacola Florida. But even after successfully completing a rigorous battery of academic and physical qualification tests, and receiving a date of entry, John could not avoid the budget cuts of the 1990 “Peace Dividend.” John’s opportunity to live his life long goal of becoming a Naval Aviator was not to be.

This set back did not diminish John’s passion for Naval Aviation, he has remained well connected with many who are currently serving this nation’s defense as aviators and welcomes any opportunity to listen to a tale or two woven by veterans of Naval Air’s historic past, knowing he can now benefit all who are interested with a new tale for the pages of The Daily Briefing.

We at NuEnergen wish John luck in his selection for Tailhooker of the Year and applaud his support for our nation’s armed forces especially the US Navy. We are proud to have John as a member of our team.

New Mexico National Guard Goes Green

The rapid whop, whop, whop of a wind turbine outside the New Mexico National Guard headquarters hints at a new mission for the  military: Going Green.

One of the first sites greeting visitors to the New Mexico Guard's compound near Santa Fe sees is a slender, 43-foot tall white wind turbine near headquarters. It generates 300 to 400 kilowatts a month.The electricity goes into the energy grid and the Guard receives credit on its electric bill. The turbine needs winds of at least 14 mph and can operate in winds up to 200 mph. In its first month, December to January, it operated at about 25 percent efficiency, but the National Guard expects that to increase with the spring winds.

And energy conservation doesn't end with the wind turbine. The 15-vehicle commercial fleet uses biofuels and ethanol…… and the general drives a hybrid electric-gas vehicle.

China – The new Wind Superpower?

The numbers are in, and as expected 2008 set a record year for the worldwide wind industry as new wind farms generating a total of 27,000 megawatts of greenhouse gas-free electricity came online, according to the Global Wind Energy Council.

The headline was that the United States overtook the world’s green superpower, Germany, by installing 8,358 megawatts in 2008  - a 50% jump from the previous year and enough wind energy to power two million American homes. But the big story this year will be China’s rapid emergence as the next global wind power.

China last year doubled its wind energy capacity - for the fourth straight year - adding 6,300 megawatts of new electricity generation for a  total capacity of 12,210 megawatts.  A third of the world’s new wind capacity last year was installed in Asia, with China  accounting for 73% of that power. China reached its 2010 target of generating 5,000 megawatts of wind-powered electricity in 2007 and is expected to hit its 2030 goal of 30,000 megawatts years early.

Of course, 30,000 megawatts of wind is but a flicker in a country with more than 3,00,000 megawatts of coal-fired energy online but it’s huge by world standards and has spawned both a burgeoning domestic wind industry and growing investment by overseas companies.  General Electric (GE), one of only two U.S. turbine makers, operates a factory in China and in January the company announced a joint venture with China’s A-Power Energy Generation to make turbine gearboxes.

As the financial crisis slows growth in the U.S. and Europe, India is another potential wind power. It ended 2008 with 9,645 megawatts of wind energy and added more capacity that year - 1,800 megawatts - than former world leaders Germany and Spain.

Installed global wind capacity now stands at 120.8 gigawatts with the 2008 turbine market worth $47.5 billion, according to the Global Wind Energy Council.

2008 a Record Year at 8300 MW of New Wind Power

The U.S. wind energy industry shattered all previous records in 2008 by installing 8,358 MW of new generating capacity (enough to serve over 2 million homes), the American Wind Energy Association (AWEA) reported today.

The massive growth in 2008 swelled the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today.

“The U.S. wind energy industry’s performance in 2008 confirms that wind is an economic and job creation dynamo, ready to deliver on the President’s call to double renewable energy production in three years. At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development” said AWEA CEO Denise Bode. 

The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over 7 million cars off of the road.

The top five states in terms of capacity installed are now:

• Texas, with 7,116 MW

• Iowa, with 2,790 MW

• California, with 2,517 MW

• Minnesota, with 1,752 MW

• Washington, with 1,375 MW

Wind turbine and turbine component manufacturers announced, added or expanded 70 new facilities in the past two years, including over 55 in 2008 alone. Those new manufacturing facilities created 13,000 new direct jobs in 2008.

Gore Pushes for Investment to Fight Climate Change

Former Vice President Al Gore urged U.S. lawmakers to pass President Obama’s proposed $816 billion economic stimulus package, saying it will boost the economy while “beginning to solve the climate crisis.”

“The plan’s unprecedented investments in four key areas -- energy efficiency, renewables, a unified national energy grid and the move to clean cars -- represent an important down payment and are long overdue,” Gore told members of the Senate Foreign Relations Committee in Washington today in prepared testimony.

The U.S. House is set to vote on the stimulus plan today.

Obama and Democratic leaders in Congress have made passing legislation to fight global warming and promote clean energy a top priority. Gore’s testimony will lend clout to their efforts to reach consensus, environmental advocates said.

Gore, who has lectured worldwide about the dangers of global warming and was awarded the Nobel Peace Prize in 2007 for his efforts, has called for a 90 percent reduction in heat-trapping carbon dioxide emissions by 2050 and for the U.S. to produce all its electricity from renewable energy by 2018.

NuEnergen Speaks at Westchester County Association

NuEnergen CEO Kevin Hamilton was asked to address a large group assembled by the Westchester County Association regarding the topic of "Lower Energy Costs" this past Tuesday at The Graduate Center at Pace University.

From the Jan 13, 2009 Press Release: Taking a leadership role in addressing the economic crisis, The Westchester County Association (WCA) - the area's premier business membership and advocacy group - today proposed an economic stimulus initiative for Westchester by Westchester.

The unprecedented private sector initiative will focus on three key areas to help provide economic stability and growth for businesses and residents in the county.
The recommendations are the result of the WCA's December 12 "Economic Summit" that was attended by more than 40 top business leaders from across Westchester that focused on the concerns facing business and possible solutions.

Included in the WCA proposal;

Lower Energy Costs - Create an energy purchasing program to provide lower energy costs for specific sectors that are critical to the county's economic vitality such as hospitals, colleges, commercial office buildings and other business sectors.

William M. Mooney Jr., WCA President, said; "A clear outcome of our Economic Summit was the need to provide leadership in addressing the economic crisis faced by Westchester. Although we cannot solve the massive economic problem, we can find creative ways to address specific segments of the Westchester economy. While many details of the program remain to be worked out, we are confident that the economic stimulus initiative for Westchester by Westchester is practical and will complement and work in tandem with the anticipated federal economic stimulus program. I am confident that the Westchester business community will come together to meet this challenge as they have so often in the past".

NuEnergen will continue to offer their support to the WCA and its members in addressing energy costs.

High Efficiency Solar Cells Show Promise

A number of recent technological advances suggest new pathways to solar cells that will convert a large fraction of sunlight into electricity -- that is IF the technologies can be commercialized.

In November, researchers at Rensselaer Polytechnic Institute (RPI) announced that they have developed an antireflective coating that captures the entire spectrum of sunlight from any angle. The researchers stacked seven layers of antireflective coating, each about 100 billionths of a meter thick, or 100 nanometers. Each layer is composed of nanoscale rods, all positioned at an oblique angle. The arrangement allows each layer to enhance the antireflective qualities of the layer below it, resulting in a highly efficient capture of sunlight. The work was funded by the DOE Office of Basic Energy Sciences.

Researchers from the Massachusetts Institute of Technology (MIT) took a similar approach to boosting solar cell efficiency, but focused their efforts on the back of ultrathin silicon solar cells. The team applied an antireflection coating to the front of the cell and covered the back with multiple layers of reflective coatings and a diffraction grating, trapping light within the cell and boosting its efficiency by up to 50%.

At Ohio State University (OSU) they have devised a potential solar cell material that can capture the entire visible portion of sunlight. The material, an electrically conductive plastic combined with metals, such as molybdenum and titanium, is still a long way from a functional solar cell, but it has promising properties, including the ability to generate electrons that remained in an excited energy state for a relatively long period of time.

DESC Selects NuEnergen as Demand Response Provider

DESC Selects NuEnergen as Demand Response Provider

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--NuEnergen, LLC announced today that the Defense Energy Support Center (DESC) has awarded a Demand Response services agreement to NuEnergen, LLC. The intent of the agreement between NuEnergen and the DESC is to “enable all military and federal sites to participate in Demand Response programs with NuEnergen as a provider of services.” All federal and military facilities interested in participating in Demand Response programs throughout the United States will have their agreements approved by the DESC.

“NuEnergen has been working with the DESC over the past several months to demonstrate our broad capabilities in both Demand Response and in Energy Sourcing services and we are very proud that they have selected us as a trusted advisor,” said Kevin Hamilton, CEO of NuEnergen. Hamilton added, “The U.S. Government is the largest user of electricity in the United States and the DESC should be applauded for their efforts to reduce consumption and costs to the taxpayer.”

“The DESC encourages federal and military installations to do their part to use energy more efficiently, and Demand Response programs are a great way to meet that objective,” said Larry Fratis, Head of the Electricity Branch for DESC. “Demand Response is a solution that makes good business sense while delivering positive community and environmental benefits through increased efficiency and reliability of the electric power system. In addition, participation in this program is in line with the intent of the federal Energy Policy Act of 2005, as well as service/agency sustainability goals.”

In addition to receiving payments from local Independent Service Operators (ISOs) for participating in Demand Response programs, all federal and military locations that participate will be utilizing NuEnergen’s online Energy Management Dashboard (EMD) that tracks all Usage, Cost and Greenhouse Gas (GHG) emissions metrics at the division, location and facility levels.

If you would like more information about the Demand Response or Energy Sourcing services that NuEnergen offers, you can send an email to info@nuenergen.com, call us at 866-977-0901 or visit our website at www.nuenergen.com.

About NuEnergen

NuEnergen is an Energy Consulting and Services provider headquartered in White Plains, NY, focused on reducing energy costs and providing sustainability programs for Global 2000 clients.

About the DESC

The Defense Energy Support Center's mission is to provide the Department of Defense and other government agencies with comprehensive energy solutions in the most effective and economical manner possible. For more information, visit http://www.desc.dla.mil/default.asp.