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Gas Plant

Natural Gas Procurement

Some energy consultants focus only on electricity and do not have the expertise to manage natural gas procurement. Power Connection has significant experience and expertise in advising clients on handling natural gas purchases. We are able to assist clients across all deregulated natural gas markets in the United States. Today, most states and Washington D.C. are deregulated to some extent. Power Connection leverages its nationwide reach and experience with its regional presence and knowledge to assist our clients in making the best energy decisions specific to their situation

Natural gas prices can be affected by the amount of natural gas production, level of natural gas in storage, volumes of natural gas imports and exports, availability and prices of competing fuels, weather, political events and other economic factors. The price will generally be quoted in dollars per dekatherm (Dth), therm (Th) or dollars per million British thermal units (MMBtu). Common components that comprise a natural gas rate are:

  • Commodity: The cost of natural gas. This will be what the suppliers calculate to purchase the amount of gas you need on the wholesale market for the term of your agreement. Most contracts are priced through the New York Mercantile Exchange (NYMEX).

  • Basis: The basis is the cost difference to move your natural gas from the NYMEX at the Henry Hub in Louisiana, to your delivery point. The basis may be added or subtracted from the NYMEX price.

  • Fuel or Losses: The costs to replace the gas that is used or lost along the pipeline between your local distribution company and your business.

Again, your company must determine if you are risk-averse or are able to withstand the large potential market swings.

FIXED PRICING

A fixed price allows you to lock in a set rate over a designated time (contract term) for the generation portion of your natural gas bill. Your monthly bill will vary based on your consumption, but the rate you pay per Dth will remain constant. Again, this option shields businesses from large swings and unforeseen changes in market prices allowing for price stability

VARIABLE PRICING

With variable-priced contracts, your monthly natural gas price will fluctuate with the monthly NYMEX settlement price. There are also options to lock in a portion of the rate (basis) and your Account Manager at Power Management can monitor the markets for opportune times to lock in the remainder of the rate at a later time.

Again, this is a very general overview of the products offered and areas served that are available to businesses we work with. The benefit of working with Power Management for your business’ energy procurement is our unparalleled experience with various suppliers and market knowledge developed over the last 20 years. This expertise allows us to customize solutions for each client’s individual needs.

Our natural gas energy procurement services are available to businesses located in many states including:

  • New York

  • Massachusetts

  • Pennsylvania

  • New Jersey

  • Maryland

  • Connecticut

  • Rhode Island

  • Illinois

  • Ohio

  • Michigan

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