All In - Full Requirements Fixed Price
- Load following, fixed price for all gas consumed
- Provides price certainty for budgeting and low risk tolerance
- Price includes high risk premiums to cover volume and price risk
- Minimal savings opportunity
Basis Only – Float or Settle Pricing
- Basis component fixed for term of contract while the commodity is priced at market
- Risk premiums added for unknown financial and volumetric risk of basis Cost
- Commodity costs passed through at wholesale market price
Monthly Market Index Price
- Basis and commodity components are fixed at the market’s index price
- Fixed price is set at the beginning of each month based on published industry indices
- Contract volumes are adjusted monthly based on usage patterns due to weather and other factors
- Moves customer’s price closer to wholesale market cost
- Limited swing tolerances required
Daily Market Index Price
- Basis and commodity components are fixed at the market’s index price
- Contract volumes are adjusted daily based on usage patterns of weekday and weekend, weather and other factors
- Moves customer’s price closer to wholesale market cost
- No swing tolerance required
Swing Tolerance Provisions
- With the exception of the All-In Full Requirements price, all contracts allow for some level of swing tolerance around the contracted monthly volumes
- Volumes outside of the contracted tolerances are invoiced or credited at the daily/monthly wholesale market cost
- Volumes outside of the projected monthly usage is invoiced or credited at the daily/monthly wholesale market cost
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"Unleashing the
full potential of
the wholesale
gas and electric
markets to
maximize energy
savings for
New England
businesses"
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