The start of the new millennium saw electricity taking noticeable market share from natural gas. Times have changed—now natural gas is garnering market share from electricity. Because natural gas prices are at a 10-year low and new reserves and technologies are increasing the supply this trend is expected to continue. In fact, the U.S. Energy Information Administration increased its projection of the use of natural gas in its 2010 Annual Energy Outlook as a result of the lower price of natural gas.

What does this mean for utilities? The decreasing price gap between natural gas and electricity prices could portend a reversal of residential consumer preferences away from electric space and water heating to natural gas heating appliances. This shift presents challenges for both electricity and natural gas providers. Join us for a discussion of these challenges and how you can prepare for market changes. We start our discussion with an overview of why the price gap is closing and why it will continue. From there, you’ll learn how the closing price gap affects consumer preference, what this change means for you, and how you can manage this change.

Speakers:

Bill Horton, Director, Quantitative Analysis Group, E Source.  Bill manages the Quantitative Analysis Group of the E Source Research Department, providing statistical analysis, research, and analytical services for the Enterprise Energy Management suite of products and services. He brings more than 10 years of experience in energy economics.  His areas of research include wholesale price modeling for power and natural gas, retail electricity price modeling, supply-side analytics for the electric industry, fuels, and energy procurement strategies.

Jay Stein, Executive Vice President, Research, E Source. Jay leads research on a wide range of topics, including programs, strategies, energy technologies, and retail energy markets. He is also a specialist in HVAC, high-tech industrial process technologies, and the information technology industry. Over Jay’s 25-year career in the twin fields of energy efficiency and renewable energy, he has designed utility demand-side management programs, advanced HVAC systems, and solar thermal collectors.

You will learn:

• Why the price gap between gas and electricity is closing
• Where the prices of gas and electricity are expected to go
• What the historical market shares for space and water heating are
• How operating costs compare between gas and electric space and water heating
• Implications of this change for an energy retailer
• How this change affects demand load

Who should attend:

Members of the E Source Technology Assessment Service and Corporate Energy Manager’s Consortium.