Natural Gas
*Fixed Rate Products
Description: A fixed rate product provides a secure rate per thermal for the supply portion of your natural gas bill. Your monthly bill will vary based on usage, but the rate your pay for natural gas you use will remain constant regardless of any variables in the market. Options for length of the contract may vary based on the retail supplier, but fixed-price products are often available in terms as short as 3 months or as long as 24 months. Benefits: A fixed rate is often preferred by businesses with low risk tolerance, while offering a level of budget certainty, aiding in the control of operational costs. Cost control should not be confused with immediate cost savings—although a well-timed purchase can produce cost savings immediately and over time. A fixed price product is also a very low maintenance choice. Once you have locked in your fixed rate, you do not have to manage your natural gas procurement until your contract is nearing expiration. |  |
*Variable Rate/ Market Index Products
Description: Index price products (also referred to as market-based products) provide supply at a rate that correlates with a published index (natural gas market).
Benefits: An index price product may provide greater flexibility to take advantage of short-term market opportunities until the timing and market conditions are more advantageous to lock in on a long-term contract with a fixed price product.
Description: Index price products (also referred to as market-based products) provide supply at a rate that correlates with a published index (natural gas market).
Benefits: An index price product may provide greater flexibility to take advantage of short-term market opportunities until the timing and market conditions are more advantageous to lock in on a long-term contract with a fixed price product.
