Natural gas continues to be a tremendous value

Natural gas pricing in 2012 is expected to remain low and stable, thanks to higher estimates for U.S. shale gas resources which will drive an increase in U.S. production. While the average 2012 price reflects some tightening in supply as domestic production growth slows in comparison to past years, the average natural gas well head price is predicted to remain relatively low through at least 2022. Natural gas remains the most affordable, environmentally friendly fuel choice for homeowners and business customers. Natural gas prices are primarily determined by storage, supply levels and customer demand, according to Doug Peterson, director of Sales and Conservation Improvement Programs at CenterPoint Energy.

Natural gas storage and supply 

Working natural gas in storage is 3 percent below the five-year average. Inventories are also below last year's levels, but are expected to rebound to last year's levels by the end of the 2011 injection season due to high production rates. The amount of natural gas in the U.S. has risen to one of the highest levels on record. And, due to the increased supply from shale gas, it is estimated that there is over 100 years of supply at current usage levels. In 2000, shale gas accounted for only 1 percent of U.S. natural gas supply, today it is at 14 percent, and by 2035, it is projected to be 45 percent. Shale, a fine-grained rock that contains natural gas, is a growing source of natural gas supply in America and is found in many areas of the country. According to the U.S. Energy Information Administration (EIA), advances in horizontal drilling and hydraulic fracturing techniques, as well as improved drill bits, steering systems and monitoring equipment, are contributing to higher recovery rates, reduced cycle times, lower costs and shorter times required to bring shale gas to market. Shale formations lie deep within the earth and must be drilled first vertically, then horizontally before the natural gas found between the shale layers can be extracted. Shale plays are now being worked in several states including Montana, Utah, Texas, Alabama, Ohio, Pennsylvania, New York and many more.

Customer demand is expected to grow.

Total annual natural gas consumption is expected to grow by 1.8 percent by 2012, with the biggest growth area for natural gas coming from the increasing demand for electric power, which is generated from natural gas plants. Expected growth in the industrial and electric power sectors offsets projected declines in residential and commercial consumption due to anticipated warmer winter weather this year. The EIA projects a long-term increase in the demand for natural gas due to increased demand for low-carbon fuels. "Natural gas continues to be the right fuel choice for our customers," Peterson said. "It is domestic, abundant, and also remains an environmentally friendly energy choice." When you help your customers choose the natural gas heating system that is best for their home, they will benefit from lower energy costs, keep their homes comfortable and reduce their impact on the environment.

Visit CenterPointEnergy.com/gasprices to receive the latest pricing information, or request monthly gas price updates at CenterPointEnergy.com/rebatescoop.

ACEEE 2011 State Energy Efficiency Scorecard

MHCA Utility and Inspector luncheon

Minnesota ranked 8th in the nation for energy efficiency according to a recent report released by the American Council for an Energy Efficient Environment (ACEEE). Minnesota has a long record of customer energy efficiency programs offered by both investor-owned and publicly owned utilities. Minnesota has achieved significant savings from these programs, which have been in place for over two decades. Thank you for helping put Minnesota in the top ten in the country for educating customers on the benefits of high-efficiency equipment that help customers save energy and money on their utility bills. For more information on this report, visit aceee.org.

Annual Scoop Meetings

Thank you to all the heating dealers and distributors that took time out of their busy schedule to attend the 9th Annual Scoop meetings. For the first time, insulation contractors were in attendance as well. The meeting was filled with information that dealers could use in their business this heating season.

The MN Department of Commerce spoke on the importance of Home Energy Audits and "why they matter" to contractors.

Fluke Technologies gave a presentation on infrared imaging, what types of problems can be detected and how contractors can help customers solve problems in their home. CenterPoint Energy presented on Inverted Block Rate structure, which has since been suspended, gave an energy efficiency program overview and residential rebate program updates. In addition, dealers got to preview a new online energy audit tool that will become available to customers in 2012.

Watch your mail.

2012 Calendar

In December, we will be sending heating dealers our popular homeowner's calendars. Participants in our non-profit affordable housing program receive these calendars, which are filled with helpful energy-saving tips and color photos of Minnesota. These are a token of our appreciation and our way of saying "thank you" for participating in our rebate programs.

2012 Dealer Packets

Also, watch your mail in mid-January for your 2012 heating system rebate packet, which will include a comprehensive guide with information and resources along with rebate applications for 2012 installations.

Don't forget to get your rebate paperwork in! Dec. 30, 2011 is the deadline for all residential rebate applications for 2011 installations. Be sure you submit all of your rebates before the busy holiday season!