Fixed rate product – A fixed natural gas rate is an excellent product to help protect against volatility in the natural gas market. While on a fixed rate, your natural gas price will not fluctuate. This is a great plan to provide budget certainty and peace of mind during this period of extreme volatility in energy markets.
Index Plus (variable) product – Depending on the supplier the variable rate may be a cost plus or indexed based. The prices on the index based agreements are based on a published price monthly or daily averages for a specific delivery locations. The published price will occur daily or monthly depending on the chosen product source. Indexed products may be converted to a Fixed Price or Fixed Basis plus NYMEX at any time for the remaining months of the term.
Indexed price types are typical for users with uncertain usage schedules. An index is the most accurate representation of the current market. Customers considering indexed products should be aware that there is very little price certainty, and increased exposure to price volatility with this product.
Nymex Plus – The NYMEX Plus plan is designed for customers who purchase natural gas at market prices, and lock in their “basis” (cost to deliver gas to the utility city gate). See (Nymex Settlement Price History) NYMEX Plus Basis is most beneficial to customers who expect market prices to decline and want to avoid locking in natural gas supplies at current market rates. This product offers flexibility for customers who are looking to set price targets lower than the current commodity prices which may be possible over time due to lower market trends. MSIUtilities, Inc will provide helpful insight to markets that help customers set future trigger prices.