Pub. 58 2017-2018 Issue 4

13 SUMMER 2018 This means that there is very little room for error in the Electric Reliability Council of Texas (ERCOT) calculations. It is ERCOT’s primary responsibility to maintain reliable supply of electrons to all electric customers in the ERCOT delivery zones (most of Texas). When any active power plant power goes offline for any unexpected reason and/or hot temperatures cause demand spikes for even a few hours, prices move up. Even with ERCOT’s precise management of generation across the Lone Star state, if anything happens, prices can easily spike to $9000/ MWh ($9.00 per kWh) or more on some days.This in turn will likely cause the future prices of electricity for delivery in June and latermonths to increase at higher levels than they are now. Prices are already about 20 percent higher than they were in late 2017. OnMay 20, someTexas weather experts reported “the possibility of five straight days of 100-degree temperatures — the first triple digit temperatures of the season — expecting to arrive Wednesday and last through Sunday.” “The end of next week could see highs around 102, though some models call for even warmer weather”. See the link below for one view: https://www.dallasnews.com/news/weather/2018/05/24/ will-dallas-fort-worth-hit-100-degrees-first-time-year-spoiler- alert-soon Dealers that have electricity supply contracts that place the risk of supply cost increases on the dealer are subject to hefty increases in supply costs this summer and perhaps during the full term of the contract. No matter whether the dealer has a short or long-term supply contract in place now, and no matter when the contract expires, it is prudent to take a close look at the contract language and look at future prices to determine how best to mitigate supply cost risks, or perhaps fully protect the dealership from rising Texas power supply costs. Dealers that want more information and unbiased advice and insights from TADA’s Lone Star Sponsor, APPI Ene r g y, shou ld cont ac t Mi ke Pay ne at mpayne@appienergy.com and 800.520.6685. About APPI Energy APPI Energy has worked with TADA since August of 2001, serving hundreds of dealers across the state of Texas. The company provides energy supply procurement expertise, offering proprietary pricing analytics and data-driven supply solutions. Additionally, APPI Energy offers access to advisory services designed to increase energy efficiencies including lighting retrofits, utility data management/analytics, and renewable procurement solutions. In 2017, APPI Energy was selected by TheEnergyProfessionalsAssociation(TEPA)asthebrokerof the year, for its promise and innovation in areas such as contract negotiation, ethical business practices, and customer service. Find out more at www.appienergy.com .  2435 Broad St. Lake Charles, LA 70601 337.433.8664 www.LCAutoAuction.com Family Owned and Operated Since 1991 Mike Pedersen Matt Pedersen DISCOUNTED ROOMS AVAILABLE 500 UNITS WEEKLY UD0162706 MIKE PEDERSEN LA622 AU00000003 MATT PEDERSEN LA1455