Energy procurement is a critical aspect of business operations, especially in competitive markets where every decision can impact your bottom...
The post Understanding the Basics of Energy Procurement appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readEnergy procurement is a critical aspect of business operations, especially in competitive markets where every decision can impact your bottom line. Mastering the fundamentals is essential for making informed decisions that align with operational and financial objectives. By understanding the basics, businesses can optimize their energy strategy and achieve greater financial stability.
Navigating Competitive Energy Markets
Competitive energy markets allow consumers to choose their energy supplier. These markets are overseen by independent organizations called regional transmission organizations (RTOs) and independent system operators (ISOs).
There are numerous benefits of competitive energy markets, including lower energy prices, more product options and better customer service. Both businesses and households benefit from the stability and predictability of retail contracts, making them suitable for long-term planning and budgeting. Businesses can tailor their energy procurement strategies to their specific needs and circumstances, including meeting sustainability goals by purchasing clean energy through long-term agreements or energy attribute certificates (EACs).
Essential Energy Procurement Concepts
Energy procurement requires a fundamental understanding of industry terms to effectively navigate the market. A few key concepts include:
- Load Profile: Typically refers to the pattern of electricity usage over time. Think of it as how and when you use electricity. Your unique pattern of energy consumption over a given period of time is influenced by a variety of factors, such as the type of building or facility, number of occupants, weather conditions, time of day and the day of the week. By evaluating your energy usage pattern, we can develop a tailored solution to manage your energy costs and may help identify areas for efficiency improvements.
- Capacity: Capacity markets were introduced to ensure that electricity supply meets peak demand and ensure there is enough generation (or load-management capacity) in the system to cope with times of stress on the network, such as a surge in demand. The objective of the capacity market is to achieve long-term supply adequacy. Typically, auctions are held by the ISO to set capacity prices and provide grid reliability, and power generators offer their resources for a payment for electricity generated. For customers, capacity charges are typically added to your energy bill proportional to your specific demand charge – typically set on the hottest day of the year.
- Day-Ahead and Real-Time Markets: Day-ahead markets are set to meet forecasted demand one day in advance and influenced by many factors, including weather, day of the week and planned power plant outages. The real-time market updates pricing in shorter intervals, such as 15 minutes, based on real-time market conditions.
- Load Response and Curtailment: Reducing electricity consumption during high demand or grid stress periods. Load response or curtailment programs offer financial incentives for businesses to reduce their load during these times.
By understanding these concepts, businesses can make informed decisions that align with their operational goals and effectively engage with suppliers to negotiate energy contracts.
Supplier Dynamics in Competitive Markets
In competitive markets, businesses have the flexibility to choose their energy suppliers and negotiate contracts that best meet their needs. Suppliers purchase electricity from the wholesale market and sell it to consumers in the retail market. This allows businesses to select from various energy contracts, which differ in pricing models, contract length and additional services.
These contracts can be categorized into three main types:
- Fixed Contracts: Lock in a set price per kilowatt-hour (kWh) for the duration of the agreement, providing budget certainty and protection against price volatility.
- Variable Contracts: Prices fluctuate based on market conditions, offering lower prices when market rates drop and higher costs during peak periods.
- Layered/Managed Contracts: Combine fixed and index pricing by layering purchases over time or managing the contract to adapt to market conditions, offering a balance between price stability and market responsiveness.
Choosing the right contract requires an understanding of a business’s energy consumption patterns, risk tolerance and financial goals. At Constellation, our energy professionals can provide valuable insights and help businesses navigate the complexities of energy procurement.
Benefits of Sustainable Energy Procurement
In addition to cost considerations, businesses can make a significant impact by choosing suppliers with energy solutions that align with their corporate sustainability goals. By implementing energy strategies that minimize their carbon footprint, businesses can enhance their reputation and demonstrate their commitment to environmental responsibility. Sustainable energy procurement not only supports environmental goals but also offers potential long-term cost savings and compliance with regulatory requirements.
Let Constellation Simplify Energy Procurement
At Constellation, we offer a range of services to ensure that you have the flexibility and stability required to optimize your energy strategy. Our commitment to sustainability means we can help you achieve your corporate sustainability goals while managing costs effectively. Contact us today to learn how Constellation can enhance your energy procurement strategy.
© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
The post Understanding the Basics of Energy Procurement appeared first on Constellation's Energy4Business Blog.
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The post Hourly Carbon-Free Energy Matching: Transitioning from Annual to Hourly Energy Matching appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 2 min readAs companies aim to reduce carbon emissions and meet environmental regulations, demand for clean energy continues to grow. Many companies are committing to the Science Based Targets initiative (SBTi), driving the adoption of energy efficiency projects, renewable and carbon-free energy and sustainable supply chains. This surge in demand for sustainability solutions drives innovation and development in the market.
To achieve their environmental goals companies are moving to solutions that align their energy usage with clean energy sources on an hourly basis, helping them with their evolving Scope 2 Greenhouse Gas (GHG) reduction goals.
Matching for Impact: Hourly Carbon-Free Energy Matching
While annual matching products provide significant benefits, companies can achieve greater impact by seeking more precise goals that incorporate both time and location-based CFE criteria. Hourly carbon-free energy (CFE) matching allows businesses to match their energy usage on an hourly basis. Location-based criteria mean that our customer’s energy consumption is matched with supply on the same regional grid. Constellation works to optimize your sustainability efforts by incorporating both new and prior carbon-free purchases into your overall CFE strategy, ensuring a comprehensive approach to carbon reduction.
Purchasing hourly CFE through Constellation can also help your business:
- Match carbon-free generation with your consumption hour by hour, including tracking and reporting of hourly usage, generation and emissions.
- Ensure your electricity consumption is matched with attributes (RECs or EFECs) from carbon-free generators in your grid for each hour.
- Track progress on-demand through Constellation’s Hourly CFE Dashboard, available in Constellation’s digital platform.
- Ensure hourly retirements of RECs and EFECs in the PJM GATS registry at year-end*.
Impact of Hourly Carbon-Free Energy Matching
Along with meeting environmental goals, Constellation’s hourly CFE product also supports the broader mission of reducing greenhouse gas emissions and promoting renewable energy adoption. With customers across Illinois, Maryland, New Jersey, Pennsylvania and Virginia, our team matches carbon-free generation with consumption hour by hour, ensuring that our customers’ electricity usage is aligned with clean energy sources. For customers who choose to optimize their sustainability strategy through our CORe+ product for their PJM projects, there is an option to exchange their project RECs for other time-matched carbon-free energy (CFE) attributes for certain windows of time, helping them upgrade to a full 24/7 CFE match.
The hourly CFE product has helped secure 3.5 million MWhs of hourly-matched energy that otherwise would have created approximately 1.9 million metric tons of CO2. That’s equivalent to sequestering carbon in nearly 1.4 million acres of US forests in a year or taking 324,360 gas-powered cars off the road for one year – a significant sustainability impact.
Join Constellation in the Hourly Carbon-Free Energy Movement
Constellation is committed to advancing a sustainable future for businesses through carbon-free solutions. By leveraging our diverse portfolio of clean energy generation, best-in-class origination team and cutting-edge technology, we continuously innovate and create more sustainable and efficient energy solutions to meet the evolving needs of our customers.
Take Action
Ready to discover the potential of hourly matching? Download Constellation’s White Paper on Preparing for the Next Stage of Corporate Clean Energy Procurement to learn more about how the hourly carbon-free energy matching product can benefit your business and help you take part in the sustainable revolution.
*Hourly retirements of RECs and EFECs are available in the PJM region only.
© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
The post Hourly Carbon-Free Energy Matching: Transitioning from Annual to Hourly Energy Matching appeared first on Constellation's Energy4Business Blog.
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[xml_base_explicit] => [xml_lang] => ) [18] => Array ( [data] => price floor [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) [19] => Array ( [data] => price cap [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) [20] => Array ( [data] => power generation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) [21] => Array ( [data] => sovereign wealth fund [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) [22] => Array ( [data] => financial system [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [guid] => Array ( [0] => Array ( [data] => https://blogs.constellation.com/?p=10152 [attribs] => Array ( [] => Array ( [isPermaLink] => false ) ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [description] => Array ( [0] => Array ( [data] =>During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future...
The post Webinar Analysts: PJM Capacity Auction, LNG Exports and the Impacts of a “Real” Winter appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 4 min readDuring the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future factors significantly affecting the energy landscape, including the impact of a “real winter” on energy markets, key natural gas fundamentals, LNG updates and European impacts and an update on PJM’s pending capacity market price floor and cap that has been proposed to FERC.
Weather Report
Chief Meteorologist Dave Ryan provided an in-depth analysis of the weather and its impact on the energy market. The winter has been unusually cold, with a warm December followed by a January that saw significant arctic outbreak that has brought snow and rain since then. The projection for the rest of February shows continued cold weather, especially in the Midwest, Ohio Valley, and the entire East Coast. This winter is expected to be one of the coldest in recent years, with population-weighted heating degree days (HDDs) higher than the 30-year average. The cold weather pattern is expected to continue into March, but forecasts have moderated since the webinar with potential cold snaps lasting 3 to 4 days. The American weather model predicts a very aggressive return of cold air in early March, while the European model shows a more variable pattern. Overall, the winter is expected to extend for at least another four weeks, but the forecasts have moderated over the weekend of February 22 and 23.
All Things Economic
Chief Economist, Ed Fortunato, provided an analysis of the economic landscape and discussed an Executive Order signed by President Trump on February 3 supporting the creation of a sovereign wealth fund similar to countries like Norway, Saudi Arabia and Australia that are typically funded by natural resources, surplus budgets, and other assets.
Ed expressed concerns about the potential risks and benefits of such a fund. He highlighted that the United States’ financial system is sophisticated and primarily privately held, unlike other countries with state-owned assets. Ed emphasized that the U.S. stock market has historically been a premier wealth creation tool and warned that disturbing this system could have significant ramifications. Greg offered a counter viewpoint that professional money managers could offer guidelines for managing energy and mineral resource sales into investment vehicles.
Natural Gas Fundamentals
After 23 consecutive months of storage being relatively stable, there have been some shakeups in the natural gas space. Currently, natural gas storage levels are 386 Bcf (-15.5%) below year ago and 118 Bcf (-5.3%) below the five-year average. This is due to the unusually cold winter, which has increased demand for furnace heating and power generation.
The Energy Information Administration (EIA) has projected that the end-of-season storage levels will be around 1.8 trillion cubic feet. This is a notable decrease from the 2.3 trillion cubic feet recorded at the end of last winter. Some third-party vendors have even lower projections, averaging around 1.66 trillion cubic feet. While this doesn’t indicate an immediate shortage, it does represent a significant reduction in available supply compared to the previous year.
The ongoing cold weather is expected to continue impacting storage levels, with forecasts indicating a prolonged and durable winter. This situation is likely to keep natural gas prices elevated as demand remains high.
Additionally, the team highlighted that the ongoing cold weather in Europe has also caused a significant drawdown in their natural gas storage levels. This situation has led to strong demand for LNG from the United States to replace the reduced supply from Russia. The expiration of the gas transport agreement between Russia and Ukraine at the end of January further exacerbated the situation, adding an additional 30 billion cubic feet (Bcf) per month of natural gas that needs to be sourced from other suppliers.
As a result, there has been a considerable increase in calls for U.S. LNG shipments to Europe. This increased demand for LNG (which recently reached 16.5 Bcf/d) is expected to continue as Europe seeks to displace Russian gas and manage the ongoing cold weather.
PJM Capacity Auction
The 2025/2026 PJM Base Residual Auction (BRA) auction cleared at $269/MW-day. In an effort to mitigate upward price pressure in upcoming auctions, Pennsylvania Governor Josh Shapiro negotiated with PJM to set a price floor and cap for the 2026/2027 and 2027/2028 and at $175/MW-day and $325/MW-day, respectively. The governors of Maryland, New Jersey, and Delaware supported this motion at FERC. Additionally, two units in Maryland, Brandon Shores (coal) and Wagner (gas/oil) that are under Reliability Must Run (RMR) contracts with PJM, will be included in the 2026/2027 auction at $0/MW-day cost, with any revenue from the capacity auction going back to load customers.
PJM submitted the proposed price and floor comprise to FERC on February 20 for FERC approval with the stipulation that the compromise floor and cap are only to be in place for the 2026/27 and 2027/28 auctions.
Overall, the main takeaways from the PJM capacity auction include the establishment of a price floor and cap for the next two auctions, the inclusion of certain Maryland units at zero cost, and ongoing discussions about the potential impact on new investments in generation.
Market Trends and Temperature
The team concluded the webinar by looking at forward power charts, discussing “the right time to buy,” the “Market Temperature” and other factors affecting the energy market.
We invite you to join us for our next Energy Market Intel Webinar on Wednesday, March 19 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting the energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting www.constellation.com/marketintelwebinar.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Webinar Analysts: PJM Capacity Auction, LNG Exports and the Impacts of a “Real” Winter appeared first on Constellation's Energy4Business Blog.
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The post Plugged In Podcast: Delivering Strategic Solutions to Power Data Center Challenges appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readIn the rapidly evolving landscape of digital infrastructure, data centers have become the backbone of our connected world. As the demand for data storage and processing power continues to surge, driven by the rise of streaming services, hybrid work models and AI technologies, data centers face significant challenges. Some of these challenges include sourcing sufficient and sustainable energy, often relying on a mix of traditional sources like natural gas and nuclear, along with renewable energy. In this blog, we will explore three key points that highlight the current trends and solutions in meeting the energy demands of data centers.
Innovative Solutions for Increased Energy Demands
The growth of data centers has been exponential leading to a dramatic increase in their size and power requirements. The data economy is pushing the need for massive facilities, some needing hundreds of megawatts or even gigawatts. This rapid expansion presents significant challenges in sourcing sufficient and sustainable energy to meet the growing demand.
In response to the demand, data centers are now being built with higher rack densities and more powerful graphic processing units (GPUs) for complex computations. This further increases their energy consumption, making it challenging to find space and power to accommodate these demands. Add in trying to align with tenant sustainability goals, data centers are increasingly shifting towards carbon-free and renewable energy sources to track and reduce their carbon footprint.
Smart Strategies for Bridging the Energy Gaps
Another way data centers are addressing the increasing energy challenges is by adopting strategic energy sourcing and bridging solutions. These strategies involve planning energy procurement well in advance to bridge the gap until they can connect to the grid. Developers are starting talks with utilities 24 to 36 months ahead of time to secure power, especially in emerging markets.
Some of the key “bridging power solutions” data centers are using include:
- Natural gas turbines or diesel generation
- On-site microgrids with solar, batteries or natural gas
- Energy storage solutions, such as batteries, which can store excess renewable energy when available and use during periods of peak demand
These innovative measures provide a temporary solution until the data centers can connect to the grid. This not only helps in balancing the energy supply but also ensures a more reliable and sustainable power source for data centers.
Integrating Sustainability and Reliability in Data Centers
While data centers aim to meet sustainability goals, they also have to ensure their power supply is reliable. The availability of renewable sources like wind or solar can be inconsistent, so data centers often rely on a mix of renewable energy and traditional sources like natural gas and nuclear. Some data center operators, such as Microsoft and Google, have committed to making sure their energy supply is as clean as it is reliable, hour-by-hour. Constellation is proud to offer hourly-matched products, such as Hourly Carbon-Free Energy (CFE), that enable those goals. Hourly CFE ensures that the energy consumed by data centers is matched with carbon-free energy sources on an hourly basis, providing cleaner and more reliable energy supply.
Data centers are also integrating real-time monitoring tools, such as SCADA systems and DSIM software, to optimize energy efficiency. These tools allow data center operators to monitor energy usage in real-time, identify inefficiencies and make data-driven decisions to optimize their energy management. By leveraging these technologies, data centers are finding a balance between having consistent power supply and minimizing their environmental impact.
Innovation is key to keeping up with the demands of the energy industry. Looking ahead, new technologies like small modular reactors (SMRs) and clean hydrogen might provide additional sustainable and reliable energy solutions for data centers – playing a crucial role in the future of data center energy management.
Learn More with Our Podcast
Gain more insights into the energy sector by listening to our podcast, “Plugged In: Exploring Energy.” In episode four, Constellation’s Managing Director Melissa Zimmerman speaks with Ed Socia, Director of North America at datacenterHawk, expanding on the topics covered here and more challenges surrounding data centers.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Delivering Strategic Solutions to Power Data Center Challenges appeared first on Constellation's Energy4Business Blog.
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The post Webcast: Innovations in the Power Industry appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 2 min readIn our February edition of Fortunato & Friends, Chief Economist, Ed Fortunato, sat down with Nate Bender, who helps lead Constellation’s venture investing arm, Constellation Technology Ventures (CTV). They discussed how the energy industry is adapting to meet increasing demand, the impact of AI and data centers, the future impacts of geothermal energy, transmission innovations and much more.
03:43 – What is Constellation Technology Ventures and what do you do?
05:44 – What is DeepSeek and how has it changed the AI market?
13:30 – What are the impacts of data centers and AI on the energy market?
17:26 – Relationship between AI and cloud computing
18:43 – Security concerns with DeepSeek and other AI technologies
24:28 – What enhancements in technology are helping to bolster energy efficiency and reliability?
29:45 – Audience Poll: When was the last time you analyzed your energy usage?
33:01 – All about power transformers
37:53 – Future of energy and fusion technology
39:44 – Advancements in geothermal power
43:57 – The importance of weather on the energy industry
46:43 – Audience Q&A
Please stay tuned for more updates regarding our next Fortunato & Friends webinar. Ensure you are subscribed to email communications to receive updates from Constellation.
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© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the ‘Fortunato & Friends’ webinar by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Webcast: Innovations in the Power Industry appeared first on Constellation's Energy4Business Blog.
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The post The Power of Electricity Choice appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readIn today’s energy-intensive landscape, managing costs, mitigating risks and meeting sustainability goals can be challenging for businesses of all sizes. Having the ability to choose energy suppliers empowers them to optimize their energy strategies. By understanding the intricacies of electricity choice, businesses can take control of their energy procurement and better align their operations with their financial and environmental goals.
What is Electricity Choice?
In regulated electricity markets, consumers are required to purchase electricity from their designated utility provider at prices set by the public utilities commission. However, in competitive energy markets, consumers can choose between various retail electricity suppliers. This flexibility allows them to shop for the best prices, contract terms and services, encouraging suppliers to offer superior customer service and innovative solutions. As a result, energy buyers can tailor their procurement strategies to align with their specific operational requirements and financial goals.
Benefits of the Power to Choose
Having the option to select between suppliers offers several potential benefits, including:
- Cost Savings: Comparing different suppliers with competitive prices can lead to substantial savings over time. Additionally, some suppliers may offer flexible pricing plans or volume discounts that further lower costs.
- Risk Management: Diversifying energy sources helps manage price volatility and prevents supply disruptions. Fixed-rate contracts provide price stability and protect against sudden spikes in energy costs.
- Sustainability Goals: Renewable energy options help businesses meet sustainability goals and reduce their carbon footprint, enhancing their reputation and brand image by prioritizing environmental responsibility.
Choosing an Electricity Plan
Competitive markets offer customers flexibility to choose the best solutions based on their needs. When choosing a plan, it’s important for businesses to consider budget, risk tolerance and energy usage patterns. Evaluating all costs, not just per kWh prices, is crucial to making an informed decision.
Types of Electricity Plans:
- Fixed Price: Lock in a set price per kWh for the entire contract term. Contracts typically lasting from 1-5 years, providing maximum budget certainty but less flexibility.
- Index Price: Price per kWh fluctuate based on market conditions like electricity demand, fuel costs and weather. This allows customers to benefit from lower prices when market prices fall but results in less budget certainty and higher bills during peak times.
- Managed Price: A mix of fixed and index price components balances budget stability and market exposure, allowing for cost optimization while maintaining some price certainty.
Developing a Customized Electricity Purchasing Strategy
Working with a trusted provider like Constellation allows business customers to embrace a purchasing strategy tailored to their unique energy needs, risk tolerance and budget goals. This might include using a combination of plan types and strategically timing fixed price purchases. Rather than settling for a generic one-size-fits-all electricity plan, businesses can take control of their power purchases with a strategic, specialized approach.
Choosing a Retail Electric Provider
When making an electricity choice, evaluating and selecting a provider is one of the most important decisions for businesses. Considering the following key factors can help navigate the options and identify an ideal provider:
- Strong reputation and years in business
- Flexible plan options to meet your business needs
- Transparent, easy-to-understand pricing
- Strong customer service and support
- Tools and resources to make informed decisions
Benefits of Choosing Suppliers with Sustainable Energy Options
Businesses of all sizes can make an impact when choosing suppliers with energy solutions that align with their corporate sustainability goals. By implementing energy strategies that minimize their carbon footprint by increasing energy efficiency and reducing carbon emissions, they can enhance their reputation and demonstrate their commitment to environmental responsibility.
Let Constellation Simplify Electricity Choice
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© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
The post The Power of Electricity Choice appeared first on Constellation's Energy4Business Blog.
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[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [guid] => Array ( [0] => Array ( [data] => https://blogs.constellation.com/energy-management/webinar-analysts-2024-election-impacts-winter-weather-outlook-and-natural-gas-fundamentals-copy/ [attribs] => Array ( [] => Array ( [isPermaLink] => false ) ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [description] => Array ( [0] => Array ( [data] =>During the January Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future...
The post Webinar Analysts: Shifting Weather Patterns, Natural Gas Fundamentals and LNG Trends appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readDuring the January Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future factors significantly affecting the energy landscape, including the substantial shifts in weather patterns, the potential impact of tariffs on Mexico, natural gas fundamentals, LNG trends and the European energy situation.
Weather Report
Chief Meteorologist Dave Ryan discussed significant changes in weather patterns this winter, highlighting the appearance of what feels like a “normal” winter for the first time in many years. The current weather pattern, exacerbated by blocking, is expected to produce a blast of cold air that will encompass about 80% of the nation, with temperatures 10 to 20 degrees below normal. This cold outbreak is expected to produce significant heating demand across the United States.
All Things Economic
Chief Economist Ed Fortunato provided insights into the potential future economic landscape, mainly focusing on trade with Mexico and its implications for the energy markets. As one of the U.S.’s largest trading partners, Mexico acts as a significant manufacturing hub, primarily in the automotive and technology industries. Additionally, Mexico imports a significant amount of U.S. energy products, such as petroleum, due to its struggle to develop the refining capability needed to produce its own petroleum products. The incoming Trump administration has proposed implementing a 25% tariff on imports from Mexico. The discussion focused on how tariffs would impact a country that’s both one of the Gulf Coast refining complex’s top suppliers and its top international customer.
Natural Gas Fundamentals
The colder weather trend has led to a shift in natural gas storage, with the potential for significant storage draws rising due to increased heating demand. Current underground storage levels as of January 10 stand at 3,115 Bcf, -111 Bcf (-3.4%) below year ago levels but still just 77 Bcf (+2.5%) above 5-year average levels. The current cold weather expected in the current 14-day forecast will likely flip the 5-year surplus to a deficit and widen the year ago deficit. If the cold weather carries over into the February forecast as Dave mentioned has turned colder, this could drive NYMEX prices higher if end of March storage predictions fall below ~1,500 Bcf. The next month will be critical for weather demand.
On the production side, December ended at around 106 Bcf/d. However, cold weather has reduced these averages by 2-4 Bcf/d. Strong prices may incentivize producers to respond with more supply, especially in the Permian basin, as this remains the key region for additional pipeline capacity. Looking forward, the Permian basin will remain a key growth region in 2025, with the Matterhorn Express pipeline having begun operations in October and two other pipelines, Hugh Brinson and Blackcomb, slated to come online in 2026.
Liquefied Natural Gas (LNG) Exports
The team provided an update on the status of LNG export terminals, highlighting new projects and their implications for gas supply and prices in Europe. Domestically, Plaquemines Phase 2 began operations in late December, which lifted feed gas demand and export volumes to new highs. Corpus Christi Stage 3 terminal is taking some test gas but is expected to be operational at the end of March or April/May timeframe.
Additionally, there were discussions about Ukraine’s refusal to renegotiate a gas transport agreement with Russia. This situation has left Europe more exposed, increasing the need to import more natural gas, particularly from the U.S.
Market Trends and Temperature
The team concluded the webinar by looking at forward power charts, discussing “the right time to buy,” the “Market Temperature” and other factors affecting the energy market.
We invite you to join us for our next Energy Market Intel Webinar on Wednesday, February 19 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting the energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting www.constellation.com/marketintelwebinar.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Webinar Analysts: Shifting Weather Patterns, Natural Gas Fundamentals and LNG Trends appeared first on Constellation's Energy4Business Blog.
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[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [guid] => Array ( [0] => Array ( [data] => https://blogs.constellation.com/sustainability/exploring-clean-energy-products-for-scope-2-needs-copy/ [attribs] => Array ( [] => Array ( [isPermaLink] => false ) ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [description] => Array ( [0] => Array ( [data] =>As the energy landscape evolves towards more sustainable practices, the way companies report on sustainability is also changing significantly. Historically,...
The post Plugged In Podcast: Transforming Sustainability Reporting appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readAs the energy landscape evolves towards more sustainable practices, the way companies report on sustainability is also changing significantly. Historically, many companies voluntarily committed to reducing their carbon footprints through initiatives that promoted clean energy and environmental responsibility. However, as the importance of sustainability continues to grow, there is a noticeable shift from voluntary reporting to mandatory and regulated sustainability reporting. This change poses challenges for companies that need to quickly assess and address their environmental footprints and requires significant adjustments in how organizations track, report and manage their sustainability efforts.
Initiatives and Reporting Standards
In addition to mandatory reporting, there is a variety of voluntary initiatives involving reporting standards. The Climate Group’s RE100, which brings together the world’s most influential businesses committed to 100% renewable electricity, and CDP, an organization that supports companies and cities to disclose their environmental impact, have been at the forefront of voluntary sustainability commitments. Their extensive experience with voluntary reporting has given them the expertise and tools necessary to help companies navigate mandatory sustainability reporting and meet new regulatory requirements.
These groups continue to evolve with the market. For example, in addition to the RE100 initiative, the Climate Group recently launched the 24/7 Carbon-Free Coalition, a group of energy buyers, sellers and service providers committed to powering a carbon-free future, every hour of every day with locally sourced energy.
Preparing for Emerging Regulations
Preparing for the new regulations and investing in compliance reporting resources require companies to understand their carbon footprints and set detailed decarbonization goals. Additionally, investing in advanced data tracking and reporting tools can help them track energy consumption and generation data so they can visualize and compare their energy usage against clean energy sources. By leveraging these tools, companies can ensure accurate and transparent reporting, making it easier to comply with emerging regulations and set more precise sustainability targets.
Advancing to Hourly Carbon-Free Power
Building on the need for transparency and accuracy in sustainability reporting, carbon-free energy procurement is evolving from annual clean energy matching to a more ambitious, hour-by-hour approach. This shift aims to match every hour of energy use with locally sourced clean energy, pushing more companies and governments to follow suit and decarbonize their energy consumption in real time. This approach provides a more accurate view of a company’s energy use and promotes the development of local, time-aligned carbon-free energy sources, creating a more sustainable energy landscape. For example, Google has set an ambitious 24/7 carbon-free energy goal, aiming to match every hour of energy use with locally sourced clean energy by 2030 to meet customers’ demands for more precise data and reporting. Companies pursuing these ambitious goals need a verifiable way to track their progress. That’s where time-stamped hourly Energy Attribute Certificates (EACs) can help. Traditionally, Renewable Energy Certificates (RECs) and Emission-Free Energy Certificates (EFECs) have been bought and sold with annual vintages, helping organizations track their progress towards annual net zero targets. However, with the emergence of time-stamped EACs in markets like PJM and MISO, companies can now purchase carbon-free attributes generated from specific locations and times that match when and where energy is being used.
The Granular Certificate (GC) Trading Alliance is supporting the transition to time- and location-matching of clean energy purchases by providing a platform for trading hourly EACs. The GC trading and management platform can ensure environmental legitimacy, provide price transparency on where and when clean energy is most needed, and allow energy buyers to liquidate long positions and fill temporal gaps in their CFE portfolio. This ensures that companies can meet their sustainability goals with greater accuracy and transparency, ultimately leading to more effective decarbonization efforts.
Learn More with Our Podcast
Gain more insights into energy reporting by listening to our podcast, Plugged In: Exploring Energy, hosted by Chuck Hanna, Vice President of Solutions and National Accounts at Constellation. In episode three, we expand on the topics covered here and discuss additional subjects with Chris Pennington, Director of Energy and Sustainability at Iron Mountain. Tune in to our series for valuable information, including how reporting is impacting data centers, and stay updated on the future of energy.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Transforming Sustainability Reporting appeared first on Constellation's Energy4Business Blog.
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[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [guid] => Array ( [0] => Array ( [data] => https://blogs.constellation.com/energy-management/webinar-analysts-2024-election-impacts-winter-weather-outlook-and-natural-gas-fundamentals-copy/ [attribs] => Array ( [] => Array ( [isPermaLink] => false ) ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) [description] => Array ( [0] => Array ( [data] =>On November 14th, Constellation hosted its 2024 Executive Energy Forum (EEF), where Constellation and industry thought leaders discussed the evolving energy landscape,...
The post Executive Energy Forum 2024 – Responding to the New Era of Load Growth appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readOn November 14th, Constellation hosted its 2024 Executive Energy Forum (EEF), where Constellation and industry thought leaders discussed the evolving energy landscape, strategies for managing record load growth, customer energy consumption strategies and the impact of the 2024 election on the energy industry.
Rising to Challenges in the Energy Sector
Greg Kosier, Director of the Commodities Management Group at Constellation, moderated a discussion with industry leaders on how markets, grid planners and operators are adjusting to significant changes in the energy industry over the past 15 years and in the future. Panelists included Gene Alessandrini, Senior Vice President of Energy at CyrusOne; Robert Joyce, former NSA Cybersecurity Director; and Bill Berg, Vice President of Federal Regulatory Affairs at Constellation. The discussion focused on the major transformations that the energy industry has seen over the past few years, such as the shale revolution, the growth of renewable energy and the rise of LNG development. Factors influencing the future of the industry were also covered, including the rapid growth of data centers, the AI boom, EV demand and reliability and affordability concerns.
The panel highlighted the specific challenges the electric grid faces in meeting this new demand, particularly the need for more dispatchable resources and managing peak demand. They emphasized the importance of flexibility in energy management and the role of AI in energy forecasting and optimization. Additionally, constraints to building new generation resources were addressed, including an electric grid in need of upgrades, slow approvals for new clean electricity projects and finding suitable locations for additional clean energy infrastructure. The importance of data centers in the U.S. from a national security standpoint including overseas data centers and the role of AI for future economic and military advantages was also highlighted.
Powering the Future: Customer-Focused Energy Solutions
Looking at a customer focus, Shoun Sinha, Managing Director at Venture and R&D at Constellation, moderated a panel featuring Samuel Bordenave, CFO at SWITCH; Sean McEvoy, head of Sales & Chief Product Officer at Grid Beyond; Levi Love, Energy Procurement & Analytics at Sheetz; and Abhinav Krishna, VP of Commercialization & Development at Constellation. The discussion was focused on the evolving energy landscape for energy managers, innovative solutions and consumer adaptation strategies that businesses can leverage to meet their energy goals. The panel shared insights on the biggest opportunities for energy consumers, technological advancements and sustainability strategies.
The importance of flexibility in adaptive energy management strategies was emphasized, highlighting how it allows businesses to better respond to dynamic changes in electricity prices and grid conditions. Flexibility in energy management can help reduce total energy consumption, improve energy quality and enhance peak load management capabilities. Additionally, customer panelists offered their experiences with understanding their energy usage and managing their costs effectively.
2024 Election Analysis and Policy Outlooks
The program was concluded with a location-relevant discussion on the 2024 election. This panel featured Amy Harder, Executive Editor at Cipher News; Ron Brownstein, Senior Editor at The Atlantic and Senior Political Analyst at CNN; and was moderated by Bill Loveless, Co-host of the Columbia Energy Exchange podcast and Director of the Columbia Energy Journalism Initiative. The panelists discussed the second Trump administration’s likely impact on energy and climate issues. Focus was primarily held on the energy transition, especially in red states which have been resistant to clean energy initiatives.
Panelists also touched on the potential for increased oil and natural gas drilling, the impact of Elon Musk on the energy landscape and the overall uncertainties facing the industry. They emphasized that these challenges, coupled with the transformative role of AI in energy forecasting and optimization, have the potential to significantly enhance how energy demand and supply are managed.
Constellation’s Commitment to Your Energy Goals
Constellation can help you create and implement a procurement plan to achieve your emissions-free objectives, connecting you with the solutions, strategic relationships and technology you need. To help you develop a plan tailored specifically to your company, we provide you with the expertise and resources you need for success.
Watch our full Executive Energy Forum recording on demand for access to further insights on the future of energy.
© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions at the ‘Executive Energy Forum’ event by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the event or for any omission or error of fact.
The post Executive Energy Forum 2024 – Responding to the New Era of Load Growth appeared first on Constellation's Energy4Business Blog.
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The post Plugged In Podcast: Exploring Clean Energy Products for Scope 2 Needs appeared first on Constellation's Energy4Business Blog.
[attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/dc/elements/1.1/] => Array ( [creator] => Array ( [0] => Array ( [data] => Constellation [attribs] => Array ( ) [xml_base] => [xml_base_explicit] => [xml_lang] => ) ) ) [http://purl.org/rss/1.0/modules/content/] => Array ( [encoded] => Array ( [0] => Array ( [data] => 3 min readAs the energy sector evolves in this technology-driven world, businesses are under increasing pressure to reduce their carbon footprint and meet sustainability goals. One of the key challenges they face is how to effectively purchase carbon-free energy products to address their Scope 2 emissions. Once commercial and industrial energy buyers understand the energy mix in their specific market, investing in the right solutions can help them make informed decisions to support their sustainability goals.
The Importance of Carbon-Free Energy Commitments
Many companies have committed to being 100% covered by carbon-free energy by a specific date, such as 2030. This means that for every electron they use, they will procure one new electron of carbon-free electricity to cover it. To achieve these commitments, the first step is considering the dynamics of different energy markets.
Understanding Energy Markets
Every energy market is unique, with different sources of electricity, market rules, geographies, and climate and weather patterns. Recognizing these differences is crucial for companies looking to make informed decisions when purchasing carbon-free energy products that align with their sustainability goals.
The chart below shows the estimated annual grid mix by ISO region and can help businesses identify the energy landscape in different markets. This mix can vary over time based on factors such as demand, weather conditions and changes in energy production. For instance, ERCOT relies heavily on natural gas and wind, while PJM has a significant portion of its electricity generated from natural gas and nuclear power. MISO, on the other hand, has a more balanced mix with substantial contributions from natural gas, coal, wind and nuclear. The grid mix data can be used to help define your goals around carbon-free strategies, allowing each customer to determine what’s best for its needs.
Source | ERCOT | PJM | MISO |
---|---|---|---|
Natural Gas | 44.8% | 43.2% | 35.78% |
Coal | 13.9% | 14.5% | 25.95% |
Nuclear | 9.13% | 32.83% | 13.03% |
Wind | 24.12% | 3.54% | 13.61% |
Solar | 7.12% | 1.15% | 0.94% |
Hydro | 0.07% | 1.85% | 1.48% |
Carbon-Free and Renewable Energy Solutions
As businesses strive to reduce their Scope 2 emissions, implementing the right mix of carbon-free and renewable energy solutions can significantly advance sustainability goals. Customers can choose from any combination of these key solutions:
- EFECs and RECs: RECs represent the emission-free attributes of one megawatt hour (MWh) of electricity generated by a renewable energy resource, such as wind or solar. Investing in RECs or EFECs allows businesses to quickly indicate their commitment to sustainable practices.
- Offsite Renewables: Constellation Offsite Renewables (CORe) enables customers to integrate local offsite renewable energy purchases with a retail power supply contract. This includes integrating renewable energy purchases from existing renewable generation, including solar and wind facilities, into a load-following energy supply agreement or supporting the development of new renewable energy assets on their regional grid.
- Hourly Carbon-Free Energy Matching: Hourly carbon-free energy matching is an innovative solution that pairs electricity use with a local emission-free energy source on an hourly basis. This method goes beyond other net-zero programs by providing a more precise and impactful way to achieve sustainability goals. By using hour-by-hour regional tracking, businesses can ensure that their energy use is matched with clean energy sources in real-time.
Learn More with Our Podcast
To gain more insights into the energy sector, listen to our podcast, Plugged In: Exploring Energy, hosted by Chuck Hanna, Vice President of Solutions and National Accounts at Constellation. In the second episode, we expand on the topics covered here and discuss additional subjects with Adrian Anderson, General Manager of Carbon-Free Electricity, Renewable Energy & Carbon Dioxide Removal at Microsoft. We dive into the importance of data in energy management and sustainability, investments in carbon reduction and innovation, the challenges and strategies around Scope 3 emissions, and the collaboration with utilities to support a sustainable future. Tune in to our series for valuable insights and stay updated on the future of energy.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Exploring Clean Energy Products for Scope 2 Needs appeared first on Constellation's Energy4Business Blog.
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]]>Energy procurement is a critical aspect of business operations, especially in competitive markets where every decision can impact your bottom line. Mastering the fundamentals is essential for making informed decisions that align with operational and financial objectives. By understanding the basics, businesses can optimize their energy strategy and achieve greater financial stability.
Navigating Competitive Energy Markets
Competitive energy markets allow consumers to choose their energy supplier. These markets are overseen by independent organizations called regional transmission organizations (RTOs) and independent system operators (ISOs).
There are numerous benefits of competitive energy markets, including lower energy prices, more product options and better customer service. Both businesses and households benefit from the stability and predictability of retail contracts, making them suitable for long-term planning and budgeting. Businesses can tailor their energy procurement strategies to their specific needs and circumstances, including meeting sustainability goals by purchasing clean energy through long-term agreements or energy attribute certificates (EACs).
Essential Energy Procurement Concepts
Energy procurement requires a fundamental understanding of industry terms to effectively navigate the market. A few key concepts include:
- Load Profile: Typically refers to the pattern of electricity usage over time. Think of it as how and when you use electricity. Your unique pattern of energy consumption over a given period of time is influenced by a variety of factors, such as the type of building or facility, number of occupants, weather conditions, time of day and the day of the week. By evaluating your energy usage pattern, we can develop a tailored solution to manage your energy costs and may help identify areas for efficiency improvements.
- Capacity: Capacity markets were introduced to ensure that electricity supply meets peak demand and ensure there is enough generation (or load-management capacity) in the system to cope with times of stress on the network, such as a surge in demand. The objective of the capacity market is to achieve long-term supply adequacy. Typically, auctions are held by the ISO to set capacity prices and provide grid reliability, and power generators offer their resources for a payment for electricity generated. For customers, capacity charges are typically added to your energy bill proportional to your specific demand charge – typically set on the hottest day of the year.
- Day-Ahead and Real-Time Markets: Day-ahead markets are set to meet forecasted demand one day in advance and influenced by many factors, including weather, day of the week and planned power plant outages. The real-time market updates pricing in shorter intervals, such as 15 minutes, based on real-time market conditions.
- Load Response and Curtailment: Reducing electricity consumption during high demand or grid stress periods. Load response or curtailment programs offer financial incentives for businesses to reduce their load during these times.
By understanding these concepts, businesses can make informed decisions that align with their operational goals and effectively engage with suppliers to negotiate energy contracts.
Supplier Dynamics in Competitive Markets
In competitive markets, businesses have the flexibility to choose their energy suppliers and negotiate contracts that best meet their needs. Suppliers purchase electricity from the wholesale market and sell it to consumers in the retail market. This allows businesses to select from various energy contracts, which differ in pricing models, contract length and additional services.
These contracts can be categorized into three main types:
- Fixed Contracts: Lock in a set price per kilowatt-hour (kWh) for the duration of the agreement, providing budget certainty and protection against price volatility.
- Variable Contracts: Prices fluctuate based on market conditions, offering lower prices when market rates drop and higher costs during peak periods.
- Layered/Managed Contracts: Combine fixed and index pricing by layering purchases over time or managing the contract to adapt to market conditions, offering a balance between price stability and market responsiveness.
Choosing the right contract requires an understanding of a business’s energy consumption patterns, risk tolerance and financial goals. At Constellation, our energy professionals can provide valuable insights and help businesses navigate the complexities of energy procurement.
Benefits of Sustainable Energy Procurement
In addition to cost considerations, businesses can make a significant impact by choosing suppliers with energy solutions that align with their corporate sustainability goals. By implementing energy strategies that minimize their carbon footprint, businesses can enhance their reputation and demonstrate their commitment to environmental responsibility. Sustainable energy procurement not only supports environmental goals but also offers potential long-term cost savings and compliance with regulatory requirements.
Let Constellation Simplify Energy Procurement
At Constellation, we offer a range of services to ensure that you have the flexibility and stability required to optimize your energy strategy. Our commitment to sustainability means we can help you achieve your corporate sustainability goals while managing costs effectively. Contact us today to learn how Constellation can enhance your energy procurement strategy.
© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
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]]>The post Hourly Carbon-Free Energy Matching: Transitioning from Annual to Hourly Energy Matching appeared first on Constellation's Energy4Business Blog.
]]>As companies aim to reduce carbon emissions and meet environmental regulations, demand for clean energy continues to grow. Many companies are committing to the Science Based Targets initiative (SBTi), driving the adoption of energy efficiency projects, renewable and carbon-free energy and sustainable supply chains. This surge in demand for sustainability solutions drives innovation and development in the market.
To achieve their environmental goals companies are moving to solutions that align their energy usage with clean energy sources on an hourly basis, helping them with their evolving Scope 2 Greenhouse Gas (GHG) reduction goals.
Matching for Impact: Hourly Carbon-Free Energy Matching
While annual matching products provide significant benefits, companies can achieve greater impact by seeking more precise goals that incorporate both time and location-based CFE criteria. Hourly carbon-free energy (CFE) matching allows businesses to match their energy usage on an hourly basis. Location-based criteria mean that our customer’s energy consumption is matched with supply on the same regional grid. Constellation works to optimize your sustainability efforts by incorporating both new and prior carbon-free purchases into your overall CFE strategy, ensuring a comprehensive approach to carbon reduction.
Purchasing hourly CFE through Constellation can also help your business:
- Match carbon-free generation with your consumption hour by hour, including tracking and reporting of hourly usage, generation and emissions.
- Ensure your electricity consumption is matched with attributes (RECs or EFECs) from carbon-free generators in your grid for each hour.
- Track progress on-demand through Constellation’s Hourly CFE Dashboard, available in Constellation’s digital platform.
- Ensure hourly retirements of RECs and EFECs in the PJM GATS registry at year-end*.
Impact of Hourly Carbon-Free Energy Matching
Along with meeting environmental goals, Constellation’s hourly CFE product also supports the broader mission of reducing greenhouse gas emissions and promoting renewable energy adoption. With customers across Illinois, Maryland, New Jersey, Pennsylvania and Virginia, our team matches carbon-free generation with consumption hour by hour, ensuring that our customers’ electricity usage is aligned with clean energy sources. For customers who choose to optimize their sustainability strategy through our CORe+ product for their PJM projects, there is an option to exchange their project RECs for other time-matched carbon-free energy (CFE) attributes for certain windows of time, helping them upgrade to a full 24/7 CFE match.
The hourly CFE product has helped secure 3.5 million MWhs of hourly-matched energy that otherwise would have created approximately 1.9 million metric tons of CO2. That’s equivalent to sequestering carbon in nearly 1.4 million acres of US forests in a year or taking 324,360 gas-powered cars off the road for one year – a significant sustainability impact.
Join Constellation in the Hourly Carbon-Free Energy Movement
Constellation is committed to advancing a sustainable future for businesses through carbon-free solutions. By leveraging our diverse portfolio of clean energy generation, best-in-class origination team and cutting-edge technology, we continuously innovate and create more sustainable and efficient energy solutions to meet the evolving needs of our customers.
Take Action
Ready to discover the potential of hourly matching? Download Constellation’s White Paper on Preparing for the Next Stage of Corporate Clean Energy Procurement to learn more about how the hourly carbon-free energy matching product can benefit your business and help you take part in the sustainable revolution.
*Hourly retirements of RECs and EFECs are available in the PJM region only.
© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
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]]>The post Webinar Analysts: PJM Capacity Auction, LNG Exports and the Impacts of a “Real” Winter appeared first on Constellation's Energy4Business Blog.
]]>During the February Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future factors significantly affecting the energy landscape, including the impact of a “real winter” on energy markets, key natural gas fundamentals, LNG updates and European impacts and an update on PJM’s pending capacity market price floor and cap that has been proposed to FERC.
Weather Report
Chief Meteorologist Dave Ryan provided an in-depth analysis of the weather and its impact on the energy market. The winter has been unusually cold, with a warm December followed by a January that saw significant arctic outbreak that has brought snow and rain since then. The projection for the rest of February shows continued cold weather, especially in the Midwest, Ohio Valley, and the entire East Coast. This winter is expected to be one of the coldest in recent years, with population-weighted heating degree days (HDDs) higher than the 30-year average. The cold weather pattern is expected to continue into March, but forecasts have moderated since the webinar with potential cold snaps lasting 3 to 4 days. The American weather model predicts a very aggressive return of cold air in early March, while the European model shows a more variable pattern. Overall, the winter is expected to extend for at least another four weeks, but the forecasts have moderated over the weekend of February 22 and 23.
All Things Economic
Chief Economist, Ed Fortunato, provided an analysis of the economic landscape and discussed an Executive Order signed by President Trump on February 3 supporting the creation of a sovereign wealth fund similar to countries like Norway, Saudi Arabia and Australia that are typically funded by natural resources, surplus budgets, and other assets.
Ed expressed concerns about the potential risks and benefits of such a fund. He highlighted that the United States’ financial system is sophisticated and primarily privately held, unlike other countries with state-owned assets. Ed emphasized that the U.S. stock market has historically been a premier wealth creation tool and warned that disturbing this system could have significant ramifications. Greg offered a counter viewpoint that professional money managers could offer guidelines for managing energy and mineral resource sales into investment vehicles.
Natural Gas Fundamentals
After 23 consecutive months of storage being relatively stable, there have been some shakeups in the natural gas space. Currently, natural gas storage levels are 386 Bcf (-15.5%) below year ago and 118 Bcf (-5.3%) below the five-year average. This is due to the unusually cold winter, which has increased demand for furnace heating and power generation.
The Energy Information Administration (EIA) has projected that the end-of-season storage levels will be around 1.8 trillion cubic feet. This is a notable decrease from the 2.3 trillion cubic feet recorded at the end of last winter. Some third-party vendors have even lower projections, averaging around 1.66 trillion cubic feet. While this doesn’t indicate an immediate shortage, it does represent a significant reduction in available supply compared to the previous year.
The ongoing cold weather is expected to continue impacting storage levels, with forecasts indicating a prolonged and durable winter. This situation is likely to keep natural gas prices elevated as demand remains high.
Additionally, the team highlighted that the ongoing cold weather in Europe has also caused a significant drawdown in their natural gas storage levels. This situation has led to strong demand for LNG from the United States to replace the reduced supply from Russia. The expiration of the gas transport agreement between Russia and Ukraine at the end of January further exacerbated the situation, adding an additional 30 billion cubic feet (Bcf) per month of natural gas that needs to be sourced from other suppliers.
As a result, there has been a considerable increase in calls for U.S. LNG shipments to Europe. This increased demand for LNG (which recently reached 16.5 Bcf/d) is expected to continue as Europe seeks to displace Russian gas and manage the ongoing cold weather.
PJM Capacity Auction
The 2025/2026 PJM Base Residual Auction (BRA) auction cleared at $269/MW-day. In an effort to mitigate upward price pressure in upcoming auctions, Pennsylvania Governor Josh Shapiro negotiated with PJM to set a price floor and cap for the 2026/2027 and 2027/2028 and at $175/MW-day and $325/MW-day, respectively. The governors of Maryland, New Jersey, and Delaware supported this motion at FERC. Additionally, two units in Maryland, Brandon Shores (coal) and Wagner (gas/oil) that are under Reliability Must Run (RMR) contracts with PJM, will be included in the 2026/2027 auction at $0/MW-day cost, with any revenue from the capacity auction going back to load customers.
PJM submitted the proposed price and floor comprise to FERC on February 20 for FERC approval with the stipulation that the compromise floor and cap are only to be in place for the 2026/27 and 2027/28 auctions.
Overall, the main takeaways from the PJM capacity auction include the establishment of a price floor and cap for the next two auctions, the inclusion of certain Maryland units at zero cost, and ongoing discussions about the potential impact on new investments in generation.
Market Trends and Temperature
The team concluded the webinar by looking at forward power charts, discussing “the right time to buy,” the “Market Temperature” and other factors affecting the energy market.
We invite you to join us for our next Energy Market Intel Webinar on Wednesday, March 19 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting the energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting www.constellation.com/marketintelwebinar.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
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]]>The post Plugged In Podcast: Delivering Strategic Solutions to Power Data Center Challenges appeared first on Constellation's Energy4Business Blog.
]]>In the rapidly evolving landscape of digital infrastructure, data centers have become the backbone of our connected world. As the demand for data storage and processing power continues to surge, driven by the rise of streaming services, hybrid work models and AI technologies, data centers face significant challenges. Some of these challenges include sourcing sufficient and sustainable energy, often relying on a mix of traditional sources like natural gas and nuclear, along with renewable energy. In this blog, we will explore three key points that highlight the current trends and solutions in meeting the energy demands of data centers.
Innovative Solutions for Increased Energy Demands
The growth of data centers has been exponential leading to a dramatic increase in their size and power requirements. The data economy is pushing the need for massive facilities, some needing hundreds of megawatts or even gigawatts. This rapid expansion presents significant challenges in sourcing sufficient and sustainable energy to meet the growing demand.
In response to the demand, data centers are now being built with higher rack densities and more powerful graphic processing units (GPUs) for complex computations. This further increases their energy consumption, making it challenging to find space and power to accommodate these demands. Add in trying to align with tenant sustainability goals, data centers are increasingly shifting towards carbon-free and renewable energy sources to track and reduce their carbon footprint.
Smart Strategies for Bridging the Energy Gaps
Another way data centers are addressing the increasing energy challenges is by adopting strategic energy sourcing and bridging solutions. These strategies involve planning energy procurement well in advance to bridge the gap until they can connect to the grid. Developers are starting talks with utilities 24 to 36 months ahead of time to secure power, especially in emerging markets.
Some of the key “bridging power solutions” data centers are using include:
- Natural gas turbines or diesel generation
- On-site microgrids with solar, batteries or natural gas
- Energy storage solutions, such as batteries, which can store excess renewable energy when available and use during periods of peak demand
These innovative measures provide a temporary solution until the data centers can connect to the grid. This not only helps in balancing the energy supply but also ensures a more reliable and sustainable power source for data centers.
Integrating Sustainability and Reliability in Data Centers
While data centers aim to meet sustainability goals, they also have to ensure their power supply is reliable. The availability of renewable sources like wind or solar can be inconsistent, so data centers often rely on a mix of renewable energy and traditional sources like natural gas and nuclear. Some data center operators, such as Microsoft and Google, have committed to making sure their energy supply is as clean as it is reliable, hour-by-hour. Constellation is proud to offer hourly-matched products, such as Hourly Carbon-Free Energy (CFE), that enable those goals. Hourly CFE ensures that the energy consumed by data centers is matched with carbon-free energy sources on an hourly basis, providing cleaner and more reliable energy supply.
Data centers are also integrating real-time monitoring tools, such as SCADA systems and DSIM software, to optimize energy efficiency. These tools allow data center operators to monitor energy usage in real-time, identify inefficiencies and make data-driven decisions to optimize their energy management. By leveraging these technologies, data centers are finding a balance between having consistent power supply and minimizing their environmental impact.
Innovation is key to keeping up with the demands of the energy industry. Looking ahead, new technologies like small modular reactors (SMRs) and clean hydrogen might provide additional sustainable and reliable energy solutions for data centers – playing a crucial role in the future of data center energy management.
Learn More with Our Podcast
Gain more insights into the energy sector by listening to our podcast, “Plugged In: Exploring Energy.” In episode four, Constellation’s Managing Director Melissa Zimmerman speaks with Ed Socia, Director of North America at datacenterHawk, expanding on the topics covered here and more challenges surrounding data centers.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Delivering Strategic Solutions to Power Data Center Challenges appeared first on Constellation's Energy4Business Blog.
]]>The post Webcast: Innovations in the Power Industry appeared first on Constellation's Energy4Business Blog.
]]>In our February edition of Fortunato & Friends, Chief Economist, Ed Fortunato, sat down with Nate Bender, who helps lead Constellation’s venture investing arm, Constellation Technology Ventures (CTV). They discussed how the energy industry is adapting to meet increasing demand, the impact of AI and data centers, the future impacts of geothermal energy, transmission innovations and much more.
03:43 – What is Constellation Technology Ventures and what do you do?
05:44 – What is DeepSeek and how has it changed the AI market?
13:30 – What are the impacts of data centers and AI on the energy market?
17:26 – Relationship between AI and cloud computing
18:43 – Security concerns with DeepSeek and other AI technologies
24:28 – What enhancements in technology are helping to bolster energy efficiency and reliability?
29:45 – Audience Poll: When was the last time you analyzed your energy usage?
33:01 – All about power transformers
37:53 – Future of energy and fusion technology
39:44 – Advancements in geothermal power
43:57 – The importance of weather on the energy industry
46:43 – Audience Q&A
Please stay tuned for more updates regarding our next Fortunato & Friends webinar. Ensure you are subscribed to email communications to receive updates from Constellation.
Subscribe to Constellation Emails
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the ‘Fortunato & Friends’ webinar by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
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]]>The post The Power of Electricity Choice appeared first on Constellation's Energy4Business Blog.
]]>In today’s energy-intensive landscape, managing costs, mitigating risks and meeting sustainability goals can be challenging for businesses of all sizes. Having the ability to choose energy suppliers empowers them to optimize their energy strategies. By understanding the intricacies of electricity choice, businesses can take control of their energy procurement and better align their operations with their financial and environmental goals.
What is Electricity Choice?
In regulated electricity markets, consumers are required to purchase electricity from their designated utility provider at prices set by the public utilities commission. However, in competitive energy markets, consumers can choose between various retail electricity suppliers. This flexibility allows them to shop for the best prices, contract terms and services, encouraging suppliers to offer superior customer service and innovative solutions. As a result, energy buyers can tailor their procurement strategies to align with their specific operational requirements and financial goals.
Benefits of the Power to Choose
Having the option to select between suppliers offers several potential benefits, including:
- Cost Savings: Comparing different suppliers with competitive prices can lead to substantial savings over time. Additionally, some suppliers may offer flexible pricing plans or volume discounts that further lower costs.
- Risk Management: Diversifying energy sources helps manage price volatility and prevents supply disruptions. Fixed-rate contracts provide price stability and protect against sudden spikes in energy costs.
- Sustainability Goals: Renewable energy options help businesses meet sustainability goals and reduce their carbon footprint, enhancing their reputation and brand image by prioritizing environmental responsibility.
Choosing an Electricity Plan
Competitive markets offer customers flexibility to choose the best solutions based on their needs. When choosing a plan, it’s important for businesses to consider budget, risk tolerance and energy usage patterns. Evaluating all costs, not just per kWh prices, is crucial to making an informed decision.
Types of Electricity Plans:
- Fixed Price: Lock in a set price per kWh for the entire contract term. Contracts typically lasting from 1-5 years, providing maximum budget certainty but less flexibility.
- Index Price: Price per kWh fluctuate based on market conditions like electricity demand, fuel costs and weather. This allows customers to benefit from lower prices when market prices fall but results in less budget certainty and higher bills during peak times.
- Managed Price: A mix of fixed and index price components balances budget stability and market exposure, allowing for cost optimization while maintaining some price certainty.
Developing a Customized Electricity Purchasing Strategy
Working with a trusted provider like Constellation allows business customers to embrace a purchasing strategy tailored to their unique energy needs, risk tolerance and budget goals. This might include using a combination of plan types and strategically timing fixed price purchases. Rather than settling for a generic one-size-fits-all electricity plan, businesses can take control of their power purchases with a strategic, specialized approach.
Choosing a Retail Electric Provider
When making an electricity choice, evaluating and selecting a provider is one of the most important decisions for businesses. Considering the following key factors can help navigate the options and identify an ideal provider:
- Strong reputation and years in business
- Flexible plan options to meet your business needs
- Transparent, easy-to-understand pricing
- Strong customer service and support
- Tools and resources to make informed decisions
Benefits of Choosing Suppliers with Sustainable Energy Options
Businesses of all sizes can make an impact when choosing suppliers with energy solutions that align with their corporate sustainability goals. By implementing energy strategies that minimize their carbon footprint by increasing energy efficiency and reducing carbon emissions, they can enhance their reputation and demonstrate their commitment to environmental responsibility.
Let Constellation Simplify Electricity Choice
At Constellation, we are committed to understanding your unique energy needs. Our team of experts can help you navigate the complexities of the competitive energy market to find the best prices and solutions to optimize your operations and achieve your sustainability goals. Contact us today to learn how we can help your business unlock the full potential of electricity choice and take control of your energy strategy.
© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC or Constellation Navigator, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.
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]]>The post Webinar Analysts: Shifting Weather Patterns, Natural Gas Fundamentals and LNG Trends appeared first on Constellation's Energy4Business Blog.
]]>During the January Constellation monthly Energy Market Intelligence Webinar, Constellation’s Commodities Management Group (CMG) provided comprehensive coverage of current and future factors significantly affecting the energy landscape, including the substantial shifts in weather patterns, the potential impact of tariffs on Mexico, natural gas fundamentals, LNG trends and the European energy situation.
Weather Report
Chief Meteorologist Dave Ryan discussed significant changes in weather patterns this winter, highlighting the appearance of what feels like a “normal” winter for the first time in many years. The current weather pattern, exacerbated by blocking, is expected to produce a blast of cold air that will encompass about 80% of the nation, with temperatures 10 to 20 degrees below normal. This cold outbreak is expected to produce significant heating demand across the United States.
All Things Economic
Chief Economist Ed Fortunato provided insights into the potential future economic landscape, mainly focusing on trade with Mexico and its implications for the energy markets. As one of the U.S.’s largest trading partners, Mexico acts as a significant manufacturing hub, primarily in the automotive and technology industries. Additionally, Mexico imports a significant amount of U.S. energy products, such as petroleum, due to its struggle to develop the refining capability needed to produce its own petroleum products. The incoming Trump administration has proposed implementing a 25% tariff on imports from Mexico. The discussion focused on how tariffs would impact a country that’s both one of the Gulf Coast refining complex’s top suppliers and its top international customer.
Natural Gas Fundamentals
The colder weather trend has led to a shift in natural gas storage, with the potential for significant storage draws rising due to increased heating demand. Current underground storage levels as of January 10 stand at 3,115 Bcf, -111 Bcf (-3.4%) below year ago levels but still just 77 Bcf (+2.5%) above 5-year average levels. The current cold weather expected in the current 14-day forecast will likely flip the 5-year surplus to a deficit and widen the year ago deficit. If the cold weather carries over into the February forecast as Dave mentioned has turned colder, this could drive NYMEX prices higher if end of March storage predictions fall below ~1,500 Bcf. The next month will be critical for weather demand.
On the production side, December ended at around 106 Bcf/d. However, cold weather has reduced these averages by 2-4 Bcf/d. Strong prices may incentivize producers to respond with more supply, especially in the Permian basin, as this remains the key region for additional pipeline capacity. Looking forward, the Permian basin will remain a key growth region in 2025, with the Matterhorn Express pipeline having begun operations in October and two other pipelines, Hugh Brinson and Blackcomb, slated to come online in 2026.
Liquefied Natural Gas (LNG) Exports
The team provided an update on the status of LNG export terminals, highlighting new projects and their implications for gas supply and prices in Europe. Domestically, Plaquemines Phase 2 began operations in late December, which lifted feed gas demand and export volumes to new highs. Corpus Christi Stage 3 terminal is taking some test gas but is expected to be operational at the end of March or April/May timeframe.
Additionally, there were discussions about Ukraine’s refusal to renegotiate a gas transport agreement with Russia. This situation has left Europe more exposed, increasing the need to import more natural gas, particularly from the U.S.
Market Trends and Temperature
The team concluded the webinar by looking at forward power charts, discussing “the right time to buy,” the “Market Temperature” and other factors affecting the energy market.
We invite you to join us for our next Energy Market Intel Webinar on Wednesday, February 19 at 2 pm ET. Constellation energy experts will offer detailed and timely updates on factors affecting the energy landscape such as weather, natural gas storage and production, and domestic and global economic conditions. Register by visiting www.constellation.com/marketintelwebinar.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the webcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
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]]>The post Plugged In Podcast: Transforming Sustainability Reporting appeared first on Constellation's Energy4Business Blog.
]]>As the energy landscape evolves towards more sustainable practices, the way companies report on sustainability is also changing significantly. Historically, many companies voluntarily committed to reducing their carbon footprints through initiatives that promoted clean energy and environmental responsibility. However, as the importance of sustainability continues to grow, there is a noticeable shift from voluntary reporting to mandatory and regulated sustainability reporting. This change poses challenges for companies that need to quickly assess and address their environmental footprints and requires significant adjustments in how organizations track, report and manage their sustainability efforts.
Initiatives and Reporting Standards
In addition to mandatory reporting, there is a variety of voluntary initiatives involving reporting standards. The Climate Group’s RE100, which brings together the world’s most influential businesses committed to 100% renewable electricity, and CDP, an organization that supports companies and cities to disclose their environmental impact, have been at the forefront of voluntary sustainability commitments. Their extensive experience with voluntary reporting has given them the expertise and tools necessary to help companies navigate mandatory sustainability reporting and meet new regulatory requirements.
These groups continue to evolve with the market. For example, in addition to the RE100 initiative, the Climate Group recently launched the 24/7 Carbon-Free Coalition, a group of energy buyers, sellers and service providers committed to powering a carbon-free future, every hour of every day with locally sourced energy.
Preparing for Emerging Regulations
Preparing for the new regulations and investing in compliance reporting resources require companies to understand their carbon footprints and set detailed decarbonization goals. Additionally, investing in advanced data tracking and reporting tools can help them track energy consumption and generation data so they can visualize and compare their energy usage against clean energy sources. By leveraging these tools, companies can ensure accurate and transparent reporting, making it easier to comply with emerging regulations and set more precise sustainability targets.
Advancing to Hourly Carbon-Free Power
Building on the need for transparency and accuracy in sustainability reporting, carbon-free energy procurement is evolving from annual clean energy matching to a more ambitious, hour-by-hour approach. This shift aims to match every hour of energy use with locally sourced clean energy, pushing more companies and governments to follow suit and decarbonize their energy consumption in real time. This approach provides a more accurate view of a company’s energy use and promotes the development of local, time-aligned carbon-free energy sources, creating a more sustainable energy landscape. For example, Google has set an ambitious 24/7 carbon-free energy goal, aiming to match every hour of energy use with locally sourced clean energy by 2030 to meet customers’ demands for more precise data and reporting. Companies pursuing these ambitious goals need a verifiable way to track their progress. That’s where time-stamped hourly Energy Attribute Certificates (EACs) can help. Traditionally, Renewable Energy Certificates (RECs) and Emission-Free Energy Certificates (EFECs) have been bought and sold with annual vintages, helping organizations track their progress towards annual net zero targets. However, with the emergence of time-stamped EACs in markets like PJM and MISO, companies can now purchase carbon-free attributes generated from specific locations and times that match when and where energy is being used.
The Granular Certificate (GC) Trading Alliance is supporting the transition to time- and location-matching of clean energy purchases by providing a platform for trading hourly EACs. The GC trading and management platform can ensure environmental legitimacy, provide price transparency on where and when clean energy is most needed, and allow energy buyers to liquidate long positions and fill temporal gaps in their CFE portfolio. This ensures that companies can meet their sustainability goals with greater accuracy and transparency, ultimately leading to more effective decarbonization efforts.
Learn More with Our Podcast
Gain more insights into energy reporting by listening to our podcast, Plugged In: Exploring Energy, hosted by Chuck Hanna, Vice President of Solutions and National Accounts at Constellation. In episode three, we expand on the topics covered here and discuss additional subjects with Chris Pennington, Director of Energy and Sustainability at Iron Mountain. Tune in to our series for valuable information, including how reporting is impacting data centers, and stay updated on the future of energy.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Transforming Sustainability Reporting appeared first on Constellation's Energy4Business Blog.
]]>The post Executive Energy Forum 2024 – Responding to the New Era of Load Growth appeared first on Constellation's Energy4Business Blog.
]]>On November 14th, Constellation hosted its 2024 Executive Energy Forum (EEF), where Constellation and industry thought leaders discussed the evolving energy landscape, strategies for managing record load growth, customer energy consumption strategies and the impact of the 2024 election on the energy industry.
Rising to Challenges in the Energy Sector
Greg Kosier, Director of the Commodities Management Group at Constellation, moderated a discussion with industry leaders on how markets, grid planners and operators are adjusting to significant changes in the energy industry over the past 15 years and in the future. Panelists included Gene Alessandrini, Senior Vice President of Energy at CyrusOne; Robert Joyce, former NSA Cybersecurity Director; and Bill Berg, Vice President of Federal Regulatory Affairs at Constellation. The discussion focused on the major transformations that the energy industry has seen over the past few years, such as the shale revolution, the growth of renewable energy and the rise of LNG development. Factors influencing the future of the industry were also covered, including the rapid growth of data centers, the AI boom, EV demand and reliability and affordability concerns.
The panel highlighted the specific challenges the electric grid faces in meeting this new demand, particularly the need for more dispatchable resources and managing peak demand. They emphasized the importance of flexibility in energy management and the role of AI in energy forecasting and optimization. Additionally, constraints to building new generation resources were addressed, including an electric grid in need of upgrades, slow approvals for new clean electricity projects and finding suitable locations for additional clean energy infrastructure. The importance of data centers in the U.S. from a national security standpoint including overseas data centers and the role of AI for future economic and military advantages was also highlighted.
Powering the Future: Customer-Focused Energy Solutions
Looking at a customer focus, Shoun Sinha, Managing Director at Venture and R&D at Constellation, moderated a panel featuring Samuel Bordenave, CFO at SWITCH; Sean McEvoy, head of Sales & Chief Product Officer at Grid Beyond; Levi Love, Energy Procurement & Analytics at Sheetz; and Abhinav Krishna, VP of Commercialization & Development at Constellation. The discussion was focused on the evolving energy landscape for energy managers, innovative solutions and consumer adaptation strategies that businesses can leverage to meet their energy goals. The panel shared insights on the biggest opportunities for energy consumers, technological advancements and sustainability strategies.
The importance of flexibility in adaptive energy management strategies was emphasized, highlighting how it allows businesses to better respond to dynamic changes in electricity prices and grid conditions. Flexibility in energy management can help reduce total energy consumption, improve energy quality and enhance peak load management capabilities. Additionally, customer panelists offered their experiences with understanding their energy usage and managing their costs effectively.
2024 Election Analysis and Policy Outlooks
The program was concluded with a location-relevant discussion on the 2024 election. This panel featured Amy Harder, Executive Editor at Cipher News; Ron Brownstein, Senior Editor at The Atlantic and Senior Political Analyst at CNN; and was moderated by Bill Loveless, Co-host of the Columbia Energy Exchange podcast and Director of the Columbia Energy Journalism Initiative. The panelists discussed the second Trump administration’s likely impact on energy and climate issues. Focus was primarily held on the energy transition, especially in red states which have been resistant to clean energy initiatives.
Panelists also touched on the potential for increased oil and natural gas drilling, the impact of Elon Musk on the energy landscape and the overall uncertainties facing the industry. They emphasized that these challenges, coupled with the transformative role of AI in energy forecasting and optimization, have the potential to significantly enhance how energy demand and supply are managed.
Constellation’s Commitment to Your Energy Goals
Constellation can help you create and implement a procurement plan to achieve your emissions-free objectives, connecting you with the solutions, strategic relationships and technology you need. To help you develop a plan tailored specifically to your company, we provide you with the expertise and resources you need for success.
Watch our full Executive Energy Forum recording on demand for access to further insights on the future of energy.
© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions at the ‘Executive Energy Forum’ event by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the event or for any omission or error of fact.
The post Executive Energy Forum 2024 – Responding to the New Era of Load Growth appeared first on Constellation's Energy4Business Blog.
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]]>As the energy sector evolves in this technology-driven world, businesses are under increasing pressure to reduce their carbon footprint and meet sustainability goals. One of the key challenges they face is how to effectively purchase carbon-free energy products to address their Scope 2 emissions. Once commercial and industrial energy buyers understand the energy mix in their specific market, investing in the right solutions can help them make informed decisions to support their sustainability goals.
The Importance of Carbon-Free Energy Commitments
Many companies have committed to being 100% covered by carbon-free energy by a specific date, such as 2030. This means that for every electron they use, they will procure one new electron of carbon-free electricity to cover it. To achieve these commitments, the first step is considering the dynamics of different energy markets.
Understanding Energy Markets
Every energy market is unique, with different sources of electricity, market rules, geographies, and climate and weather patterns. Recognizing these differences is crucial for companies looking to make informed decisions when purchasing carbon-free energy products that align with their sustainability goals.
The chart below shows the estimated annual grid mix by ISO region and can help businesses identify the energy landscape in different markets. This mix can vary over time based on factors such as demand, weather conditions and changes in energy production. For instance, ERCOT relies heavily on natural gas and wind, while PJM has a significant portion of its electricity generated from natural gas and nuclear power. MISO, on the other hand, has a more balanced mix with substantial contributions from natural gas, coal, wind and nuclear. The grid mix data can be used to help define your goals around carbon-free strategies, allowing each customer to determine what’s best for its needs.
Source | ERCOT | PJM | MISO |
---|---|---|---|
Natural Gas | 44.8% | 43.2% | 35.78% |
Coal | 13.9% | 14.5% | 25.95% |
Nuclear | 9.13% | 32.83% | 13.03% |
Wind | 24.12% | 3.54% | 13.61% |
Solar | 7.12% | 1.15% | 0.94% |
Hydro | 0.07% | 1.85% | 1.48% |
Carbon-Free and Renewable Energy Solutions
As businesses strive to reduce their Scope 2 emissions, implementing the right mix of carbon-free and renewable energy solutions can significantly advance sustainability goals. Customers can choose from any combination of these key solutions:
- EFECs and RECs: RECs represent the emission-free attributes of one megawatt hour (MWh) of electricity generated by a renewable energy resource, such as wind or solar. Investing in RECs or EFECs allows businesses to quickly indicate their commitment to sustainable practices.
- Offsite Renewables: Constellation Offsite Renewables (CORe) enables customers to integrate local offsite renewable energy purchases with a retail power supply contract. This includes integrating renewable energy purchases from existing renewable generation, including solar and wind facilities, into a load-following energy supply agreement or supporting the development of new renewable energy assets on their regional grid.
- Hourly Carbon-Free Energy Matching: Hourly carbon-free energy matching is an innovative solution that pairs electricity use with a local emission-free energy source on an hourly basis. This method goes beyond other net-zero programs by providing a more precise and impactful way to achieve sustainability goals. By using hour-by-hour regional tracking, businesses can ensure that their energy use is matched with clean energy sources in real-time.
Learn More with Our Podcast
To gain more insights into the energy sector, listen to our podcast, Plugged In: Exploring Energy, hosted by Chuck Hanna, Vice President of Solutions and National Accounts at Constellation. In the second episode, we expand on the topics covered here and discuss additional subjects with Adrian Anderson, General Manager of Carbon-Free Electricity, Renewable Energy & Carbon Dioxide Removal at Microsoft. We dive into the importance of data in energy management and sustainability, investments in carbon reduction and innovation, the challenges and strategies around Scope 3 emissions, and the collaboration with utilities to support a sustainable future. Tune in to our series for valuable insights and stay updated on the future of energy.
By addressing these challenges and offering custom solutions, Constellation is leading the way in the transition to a sustainable and reliable energy future. Join us on this journey and discover how we can help you achieve your energy goals.
© 2024 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. The views, thoughts and opinions expressed in the blog and podcast by each participant belong solely to the speaker and not necessarily to the speaker’s employer (including Constellation Energy Corporation or any of its affiliates), organization, committee or other group or individual. Constellation does not make and expressly disclaims, any express or implied guaranty, representation or warranty regarding any opinions or statements set forth herein or in the webcast. Constellation shall not be responsible for any reliance upon any information, opinions, or statements contained in the webcast or for any omission or error of fact.
The post Plugged In Podcast: Exploring Clean Energy Products for Scope 2 Needs appeared first on Constellation's Energy4Business Blog.
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