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Natural Gas

For nearly two decades now, commercial and industrial natural gas users have enjoyed the freedom of choosing their own supplier. In fact, deregulation of natural gas has really led the way in breaking down the monopolistic hold that the public utilities once held us under. But what does choosing your own supplier mean? Delivering natural gas to your facility involves 3 main components:

  • Production of the actual physical commodity itself.
  • The transportation of the gas from where it is produced via long-haul interstate pipelines to your local natural gas utility company.
  • Distribution of the gas through your local utility system to your building or plant.

In contracting for your own supply, rather than buying from the gas utility, a third-party supplier will bundle together the commodity and interstate transportation and sell the gas to you at your gas utility’s city-gate station. From there your local utility redelivers the gas to your facility. What typically was a single purchase from the gas utility has now been split into 2 parts; the supply portion, and the distribution portion, those fees paid to the gas utility for use of their pipes and meters, etc… By purchasing the commodity directly from a supplier, many companies have saved money versus buying from the gas utility. And these programs are mandated by state utility commissions, and endorsed by local gas utility companies. There is no fear of retribution on the part of the gas utilities, these programs have been around far too long.

Different natural gas utilities have their own pricing methodology. This may include prices that fluctuate monthly, quarterly, or annually. These are prices that are regulated by the state utility commission and are basically static in their approach. Through the use of a third-party supplier, they are able to offer a great variety of pricing options that your utility just can’t offer. Pricing examples include:

  • Fixed prices at term lengths you choose.
  • Variable monthly prices based upon the NYMEX futures market, or industry indexes.
  • Or some combination of the two above, see there is no limitation on what you can contract for on your own through a direct supplier.

Contact Us today for a free account analysis to determine what pricing options you’ve been missing out on, and how you can take control of your natural gas expenses.