EVERSOURCE NEEDS TO ISSUE REFUNDS. Nat gas trading @ $2.83 Henry Hub which is down about 70% since August peak.

Submitted by BeerPizzaGaming t3_10mfmyj in Connecticut

So anyone whom looks at the actual price of natural gas knows it is trading 70% lower than it was in August due to weak demand and a mild winter so far.
Current market prices for natural gas are nearly at levels last seen during 2020 while the PURA approved rates are at their highest levels ever.
Given Eversource received approval and raised rates substantially on both natural gas and electricity, they should be issuing refunds come next rate cycle. Having rates raised as much as they were (bad luck as triggers kicked in when gas prices were at their peak) should not further line Eversources pockets.
I am not mad at Eversource nor PURA (assuming the markets were not manipulated) as the mercantile trading price did rise, however, given the nearly cliff like drop off since then, Eversource should not reap that windfall of profits and/ or to pay out bonuses to their executives and shareholders.

0

Comments

You must log in or register to comment.

AhbabaOooMaoMao t1_j63vbbk wrote

I would think that if the officers or directors of Eversource moved the company to issue refunds to rate payers instead of dividends to shareholders, the shareholders would sue said officers or directors for breach of fiduciary duty.

This is the desolation of capitalism, one fat cat ends up with everything in the end, everyone else has starved or fled.

It requires a duty to owners, not to customers. What good is owning a store if there are no customers that can afford to shop there?

4

BeerPizzaGaming OP t1_j63vjxr wrote

I agree with that. At this point the AG or legislature needs to step in and do something though. This company is out of control.

3

TheAnt06 t1_j63463n wrote

Eversource does not make any profit off of delivery supply. They have to pay for the 6 months of gas the state requires them to purchase at a time.

I'm all for fuck Eversource, but you're ignoring two fact. They have 6-month long contracts for gas and they bought at X price. And they do not get any revenue from the actual delivery supply of the gas / electricity.

3

BeerPizzaGaming OP t1_j63ptaq wrote

We'll see how their profits are over the next 6 to 12 months....
In short, you need to educate yourself a bit more.

0

TheAnt06 t1_j63rgjh wrote

I am educated. And had to correct the usage of delivery in my post.

They do not profit on supply at all. Period. Nothing you can say "educate yourself" will change that. It is a fact.

They only profit on delivery.

2

BeerPizzaGaming OP t1_j63uxnd wrote

From your first response;

>Eversource does not make any profit off of delivery.

If you were educated and knew what you were talking about you would know that since generation and delivery were decoupled Eversource cannot mark up generation services they do not perform and ALL of their profit would come from delivery.
Eversource, however, has many subsidiaries which are involved in various aspects of natural gas supply, electricity generation and market pricing in addition to delivery of power and gas etc..
In the mid 2010's there was huge backlash when it was revealed that Eversource was still generating and selling power and at a substantial markup through some of their subsidiaries whom owned power plants. This forced Eversource to auction and sell off those plants (2018 I think but I do not recall exactly).
The whole industry, however, is like the cable industry, it is a protected oligopoly.
Do some research.

1

AhbabaOooMaoMao t1_j63vrn8 wrote

>I am educated. And had to correct the usage of delivery in my post. > >They do not profit on supply at all. Period. Nothing you can say "educate yourself" will change that. It is a fact.

At the end of the line, bud, it's the same richers that own the big chunks of shares of deliverers and suppliers. Integrated investing.

The solution to our Eversource problem js not fossil fuels. It is antitrust law and insider trading laws, both federal matters.

Anything else is just bandaids.

1

BeerPizzaGaming OP t1_j67vfou wrote

Someone that understands how the deregulation actually worked.
Nothing more than a huge scam to make a small group rich.

2

[deleted] t1_j63s6dp wrote

why dont you educate yourself? You have people on this thread who sound far more knowledgeable than yourself and you just get pissy when they point things out. You are unequivocally wrong so maybe open your mind when people are politely respond to your dumbass post to begin with.

1

BeerPizzaGaming OP t1_j63vypk wrote

Poster claimed Eversource does not make anything on delivery. When it comes to deregulating utilities, the whole idea was by having competition on the generation/ supply side overall costs would be driven down. In short this means Eversource cannot markup on the supply/ generation side when they are not the supplier/ generator. As such the ONLY profit they could make would come from delivery.
So maybe you should understand that youre actually the dumbass.

1

[deleted] t1_j63x39c wrote

Eversource has a guarunteed return on equity which is determined by pura. their pricing fluctuates to reflect that. If their net income goes down one period and their ROE falls below their target threshold they make it up the next period. Same in the inverse situation. Also, dont be such a troll and pick fights with everybody who is respponding to your post with information you are not accounting for.

0

ctrealestateatty t1_j66nyp7 wrote

He reversed supply and delivery. You’re jumping on that (which he has since corrected) but your response has nothing to do with the actual issue at hand, supply. ES does not profit on supply. Other companies might, but they don’t.

0

BeerPizzaGaming OP t1_j67v2yz wrote

So you are saying because that poster has now corrected their statement after I pointed out their error that somehow they are now in the right? and my response to their original response is now somehow wrong? LOL
You should work for Eversource or the government... if you dont already......hmmmm..... quickly looking at your post history you seem to be very active when it comes to any comments/ statements that are concerning Eversource and utilities....anyway
Regardless of the above, it still does not change the fact that Eversource is;

-an oligopoly,
-has multiple subsidiaries of which many do profit off of supply rate increases,
-continue to raise their own rates and profits grow in excess of the rate of inflation
-CT has the highest utility rates in the continental US.

0

ctrealestateatty t1_j685hpk wrote

CT has the 4th highest rates in the continental US. The first figure is size of bill, not rate. And all the other high priced places are right here with us. It’s a regional issue, regardless of provider.

Name the subsidiaries you’re talking about.

I never said your response re him mixing it up was wrong. But it was irrelevant to the actual issue. The response to that was simply “you mean supply not delivery”, in effect, but then you never went on to get to the point, you just kept hammering at the mistake.

0

BeerPizzaGaming OP t1_j690kol wrote

Not sure what data you are pulling from but CT has the highest utility costs in the continental US. If you decide to say US as a whole then I believe w are second only behind Hawaii, maybe 3rd but absolutely not 4th.

0

ctrealestateatty t1_j63f7xh wrote

Yet again, this has nothing to do with Eversource. They’re just pass through billing, and spot prices of gas are irrelevant and at least 2 layers of companies below ES.

3

[deleted] t1_j63rxt7 wrote

Love that I am not the only one who gets berated and told to GFY essentially for speaking truth about utility dynamics.

1

PoorInCT t1_j66mj94 wrote

so you mean they do the billing for free...

0

BeerPizzaGaming OP t1_j63pmg3 wrote

It does....Perhaps you should read what I wrote and educate yourself before you make idiotic statements.
The natural gas market has been in free fall since August. This is directly correlated to what we pay given the rate is set for 6 month periods. Unfortunately/ fortunately there is not a monthly variance tied to the price of natural gas. There are many issues in play but CT pays the 3rd highest rate only behind Hawaii (whom has to ship all gas in) and Maine. A substantial portion of Eversources profits come from CT relative to the other states they serve. The most recent rate (effective on Jan 1) was set when prices were at their peak.

−1