The natural gas procurement may not be a significant operating expense for some customers, TNGC recognizes that for others, the cost of gas can make or break earnings for the year. TNGC offers its customers the opportunity to choose from several pricing options and services designed to tailor gas purchase arrangements to each customer’s specific needs. Whether you require a simple monthly index purchase agreement or a more sophisticated, customized supply plan, TNGC’s gas supply team can deliver.
There are several national, independent organizations that publish natural gas commodity prices (index prices) for various locations around the country, usually associated with interstate pipelines. TNGC utilizes the published index prices on the interstate pipelines to establish billing rates for its index price customers.
Index pricing floats with the gas market. Your TNGC agreement would establish an agreed upon index. Typically, an index price is set at the first of each month. The monthly index price would apply to all gas consumed during the month, or that portion covered by the index price depending on your agreement. With index pricing:
1. Customers receive the benefits of market competitiveness in the energy markets.
2. There is no long-term commitment to a given price.
3. Market volatility often reflected in forward pricing for fixed price deals is eliminated.
4. Many TNGC agreements allow customers to convert from an index to a fixed price.
5. The total billing rate would include gas commodity index charge plus interstate pipeline transmission charges, TNGC service fees and imbalance fees, if applicable.
TNGC customers have the ability to establish a fixed price for a pre-determined quantity of gas. With fixed pricing:
1. A fixed price can be selected for any portion of customer’s monthly gas usage.
2. A fixed price can be selected for virtually any term (minimum of one month).
3. You are provided cost stability and protection from market volatility.
4. Multiple fixed price arrangements may be established enabling customers to layer fixed pricing to optimize risk management.
5. You set a target price(s) and quantity and TNGC will trigger a fixed price when the market hits your target price.
6. The total billing rate would include gas commodity fixed price charge plus interstate pipeline transmission charges, TNGC service fees and imbalance fees, if applicable.
TNGC can design a billing and information package to suit each customer’s specific requirements – simple or complex:
1. Customers with multiple facilities or site locations can receive consolidated billing information or separate bills for each location.
2. Large volume users with electronic utility metering can receive daily gas measurement data, either in a summary report at the end of each month or through a daily e-mail or fax. In some cases hourly usage data may be available.
3. TNGC can provide billing and measurement data to third parties (consultants or bill audit services).
TNGC will manage all facets of a customer’s gas transportation requirements on both interstate pipeline and local distribution systems. Typically included in all TNGC agreements (unless specifically excluded in the agreement for service), TNGC will:
1. Act as agent for the customer – accepting and managing all interstate pipeline capacity released by Gas Utilities. TNGC will also accept the temporary release of interstate capacity held by the customer.
2. Handle all gas quantity nominations and scheduling.
3. Assist the customer in complying with any pipeline or utility alert days or other operational orders that may limit deliveries.
1. TNGC can provide customized swing service and balancing services.
2. TNGC will resolve any daily monthly imbalance between scheduled and actual gas quantities, as defined by agreement.
3. TNGC can remarket excess gas or interstate pipeline capacity.
TNGC typically executes gas supply agreements for 12 to 36 month terms.