Thursday, November 5, 2009

Aggregation -- Symmes Township

(c) 2009 F. Bruce Abel



Today, for electricity, the default option does not appear the best option over the next year. A contract with a supplier that benchmarks the NYMex is the best. No guarantees. Little chance of buyer remorse. Little chance of second-guessing. In 2008 what was once a larger spend in electricity could now be a smaller spend - fixed or index -- with Dominion Retail, Inc.

Middlemen are moving down the value chain to target inexperienced smaller gas and electricity users because at today's prices they make serious money from fixed contracts - the longer the better.

But they won't make any money selling end-users the default option. Even they haven't figured out a way to make money by advising clients to do nothing.

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