Natural gas is widely used in the electric power, industrial, residential, commercial, and transportation sectors. It is used to generate electricity for industrial processes to heat buildings and water, to cook and dry clothes, and to fuel vehicles.
The price that we pay for natural gas has two main components, commodity cost and transmission costs to local utility. The pricing of natural gas has been known to be very volatile. There are several purchasing options to consider when purchasing natural gas. All these options are variations of the Fixed or Market priced strategies.
Natural gas information can be found at the U.S. Energy Information Administration http://www.eia.gov
You can fix all or a portion of your natural gas. There are several options and approaches that will eliminate or reduce exposure to market volatility and provide it with budget stability.
A variable plan varies monthly depending on market conditions. The price is based on the NYMEX (New York Mercantile Exchange), or other published market indexes.
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