Natural Gas Solutions
Managing the energy needs of our clients for over 40 years
Natural Gas Solutions
Initial Evaluation
- Evaluate account data
- Analyze LDC rate code
- Check status of current supply agreements
- Evaluate current hedge and basis position
- Assess energy consumption flexibility
- Review Tax-exempt status
Natural Gas Procurement Process
- Prepare and distribute RFP document to various suppliers
- Evaluate RFP results
- Provide detailed report and recommendation to client
- Assist in negotiating 3rd party supply agreement
Secure Competitive Basis/Supply Contract
- Basis is the cost to transport natural gas to LDC
- Essential to negotiate basis rate before hedging supplies
- Basis can vary from a negative to over 40% of your net gas supply costs
- Supplier’s contractual obligations are critical
- Your requirements are actively solicited to qualified marketers
- Responses evaluated for price, reliability, and operational order flexibility
- Recommendations provided with information on proposals’ economics and general strengths and weaknesses
- Final supplier selected and proper contract language to maximize customer protection is secured
Futures & Options Market
- Hedging programs based upon individual customer needs
- Prices frequently fluctuate 10% to 15% in a day
- Ability to evaluate future costs in real time
- Stabilized & predictable costs
Hedging Program Progression
- Understand business needs
- Evaluate market conditions and buying opportunities
- Identify and assess risk tolerance
- Formulate hedging goals and strategy
- Work directly with management to determine an appropriate hedging plan for your company
- Implement hedging schedule and define communication protocol
- Monitor market conditions & trends for extended buying opportunities
Natural Gas Invoice Analysis and Reconciliation
- Analyze and reconcile all utility and marketer bills for accuracy, errors, and omissions
Pooling of Resources Creates Economy of Scale
- Individual Pooling of Company Resources
- Take advantage of multiple accounts and pool individual site locations to maximize opportunity for basis and hedging
- Customer Choice Pool Groups
- Combine smaller natural gas loads to create an economy of scale sufficient to secure better transportation prices and hedging options.
Gas Utility Pipeline Bypass Strategies
- Evaluate opportunities
- Negotiate utility contracts
- Implement recommended changes