Natural Gas

A strong natural gas strategy allows you to manage your costs and gives you protection when you need it most.

What factors impact the solution you choose?

Your advisor will work with you to understand your organization’s risk tolerance and goals to help you choose a solution that’s the right fit for you.

Your natural gas cost is made up of two components.

Commodity

the gas itself

Transport

The charge for how the gas is delivered to your facility. The two options are Citygate and Burner Tip, which is specified by the supplier.

Most clients prefer a solution that is all-inclusive and does not break out the individual costs.

What are my options?

Your advisor uses your organization’s usage patterns and risk tolerance to find the solution that meets your needs.

Fixed Price with Swing

Ideal for clients aiming for budget certainty and no usage true-ups.

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Fixed Price, Fixed Quantities

Best fit for clients looking for a stable budget with slight risk.

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Layered

Perfect blend to offset market fluctuations.

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Managed

Designed for clients who want long-term risk management.

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What is swing percentage, and why does it matter?

Swing percentage is a distinguishing factor between gas solutions. Your “swing” indicates how much you can deviate from your monthly usage and still be charged your fixed rate. The most selected swing options are 0% swing, 10% swing, and 100% swing.

0% Swing

Your supplier determines your monthly quantities based on historical usage. Any therms you use over your monthly nominations are purchased at the market rate. If you use less than your monthly nomination, those unused therms are sold back to the market and you are credited the different based on the current market.

0% Swing

If you exceed more than 10 percent of your contracted quantities, you pay a market rate for those additional volumes. If you use under 90 percent of your contracted quantities, the supplier sells the remaining quantity back to the market and credits you the difference at market rates.

0% Swing

You pay a set price per therm for all your contracted quantities. If you exceed or use under your monthly contracted usage, your usage will be charged at your contracted rate.

Natural Gas FAQs

Storage, oil prices, and LNG exports are some of the external factors that can affect natural gas rates.

Citygate is the physical location where natural gas is delivered to your local utility. Burner Tip refers to the point at which the gas is used as fuel.
Natural gas is the number one source of electricity generation in the US. Because of the growth of natural gas, there is no longer a “best” time to purchase it.

Make Your Energy Easy

Reach out to an advisor today to see how Nania Energy can help your facility achieve energy success.

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