On behalf of the team at 5, I am pleased to forward our market letter for the fourth quarter of 2020. This issue revisits the 2020 election and discusses its potential impact on energy policy. Other topics covered include: (i) key energy provisions in the Stimulus Bill passed on December 29, 2020, (ii) green hydrogen, and (iii) the continued shift in generation from coal and nuclear to renewables. We conclude by noting the dramatic spike of LNG prices in Asia, a good reminder that, notwithstanding a long period of depressed pricing, electricity and natural gas remain volatile commodities that must be carefully managed.

On behalf of the team at 5, I am pleased to forward our market letter for the third quarter of 2020. This letter focuses on the upcoming Presidential election, the confirmation of Judge Amy Coney Barrett to the Supreme Court, and the potential impact of these events on energy policy. The election and a changing court will impact how energy policy is regulated both at the Federal and the state level. Notwithstanding the perceived impact of these changes in Washington, we caution against putting too much weight on political and judicial changes. In short, it is often the case that when it comes to energy policy, economics, not politics, often prevails.

On behalf of the team at 5, I am pleased to forward our market letter for the second quarter of 2020. This letter updates our analysis of COVID-19 and its impact on energy demand. It also discusses the pandemic’s impact on state renewable goals, and how FERC’s position on several important energy policy decisions could shift depending on which party wins the 2020 presidential election.

On behalf of the team at 5, I am pleased to forward our first market letter for 2020. Since the spread of COVID-19, our primary concerns have been the safety of our team and supporting our clients. I want to give special thanks to our technology team and its leader, Matt Shaw. Matt planned and executed our multi-year effort to develop an industry leading technology solution, Level5. While we did not build this system with a pandemic in mind, it has allowed us to support clients without interruption during these difficult months. Not surprisingly, this market letter is focused on COVID-19 and its broad and evolving impact on the energy market.

On behalf of the team at 5, I am pleased to forward our market letter for the fourth quarter of 2019. Today energy deregulation is a tale of two markets. The Mid-Atlantic states (PJM), New England (NEISO) and New York (NYISO) are caught in a struggle between state regulators who seek to subsidize carbon-free generation and opponents who argue (for economic, policy, or political reasons) that these subsidies threaten the viability of a competitive market. The debate reached a crescendo last quarter when the Federal Energy Regulatory Commission (FERC) issued an order that effectively undercuts current state subsidies of carbon-free power generators.

On behalf of the team at 5, I am pleased to forward our market letter for the third quarter of 2019. This letter discusses: (i) electricity price spikes in Texas, (ii) new limits on natural gas usage in New York, and (iii) California’s continued struggle with the linkage between power lines and wildfires.

On behalf of the team at 5, I am pleased to forward our market letter for the second quarter of 2019. The beach is a great place to find some wind and not just to fly a kite. In fact, many Northeastern states are counting on offshore wind to meet their renewable generation goals. This letter reviews recent offshore wind developments and explores how realistic these projects are in light of: (i) the relatively high cost of offshore wind, and (ii) the permitting required to construct these projects and the related transmission infrastructure.

On behalf of the team at 5, I am pleased to forward our market letter for the first quarter of 2019. Before addressing this quarter’s topics, I would like to welcome the team at Simplified Energy and Luthin Associates to the 5 family. Simplified significantly expands our team in Houston, and Luthin Associates puts us on the map in a big way in the Mid-Atlantic region. We are all very excited to work with Catherine Luthin and her team in the East, and Dan McCarthy and his team in Houston.

On behalf of the team at 5, I am pleased to forward our market letter for the fourth quarter of 2018. In this letter we focus on two topics, (i) the development of long-term retail contracts backed by renewable energy generation, and (ii) the pending bankruptcy of PG&E. We also provide brief updates on (i) an important change in the District of Columbia’s renewable regulations that will materially impact the price of electricity, and (ii) how energy issues fared in last November’s mid-term elections.

On behalf of the team at 5, I am pleased to forward our market letter for the third quarter of 2018. In this letter we focus on two topics, (i) the increased interest of large corporate purchasers in virtual power purchase agreements with renewable generators, and (ii) the upcoming mid-term elections and the possible impacts such elections could have on state and federal energy policy. I have to start, though, by expressing all of our genuine sadness at the recent passing of Phil O’Connor. Phil was one of the true leaders in in the deregulated industry and was a driving force in the opening of competitive energy markets throughout the country. He also played a pivotal role in bringing retail choice to Illinois. More importantly, he was a fine person who truly cared for others - he will be sorely missed.