Natural Gas
The natural gas market has seen unprecedented changes over the past 3 years. In
addition to record high prices, we have experienced previously unseen volatility. In the past,
gas rates generally stayed within a $.20 range over a 12 month period. We are now seeing
potential swings of $.60 or more during the winter months. UMG’s goals are to both reduce
and stabilize your cost. These services are offered for commercial accounts only.
UMG’s goal is to find the natural gas provider that offers the best program for your usage
profile. Our natural gas recommendations are intended to accomplish 2 goals. First, it
should reduce your cost over a twelve month period. Second, it will help stabilize your
costs. Other than cost, the single largest natural gas issue consumers face is the instability
of gas prices. Our recommendations will help address the issues causing that instability.
Among the questions you should ask prior to selecting a natural gas provider are:
How long has the supplier been in business?
Are they financially stable?
If they are a private company, will they release their financials to you?
How long has the supplier been providing natural gas service in Illinois?
Since programs vary by market, a program considered aggressive in another
market may not be competitive in Illinois.
What is your term length?
What happens upon expiration of your agreement? Does it automatically renew? Under
what terms?
What delivery program are they placing you on? Why?
What rate are they charging you? What are those rates based on?
Under what conditions can you lock your rates?
When and how are the rates locked?
Do you have the option to lock a percentage of your rates?
Do you have the option to lock rates for any time period?
Do they utilize contract quantities? What happens when your usage varies from those
quantities?
Can you take advantage of summer storage savings? If yes, can you assume you invoiced
for the gas when it is purchased?
Will the provider provide details as far as how and when gas is purchased?
How much gas will be stored for you?
When will the gas be stored?
Does the provider offer spot buys?
Can the above options change to address changes in the marketplace?
What measures do they take to manage your account as opposed to simply selling you
gas?
How long has the provider offered the program they are recommending?
We recommend looking at programs with a successful track record.
How has the program performed in the past?
Has it averaged a rate at or below the NGI Index?
Confirm that any analysis offered compares their program to the NGI Index, not a rate
above the NGI Index.
Are there fees for the program?
When does the provider start to charge the fees?
addition to record high prices, we have experienced previously unseen volatility. In the past,
gas rates generally stayed within a $.20 range over a 12 month period. We are now seeing
potential swings of $.60 or more during the winter months. UMG’s goals are to both reduce
and stabilize your cost. These services are offered for commercial accounts only.
UMG’s goal is to find the natural gas provider that offers the best program for your usage
profile. Our natural gas recommendations are intended to accomplish 2 goals. First, it
should reduce your cost over a twelve month period. Second, it will help stabilize your
costs. Other than cost, the single largest natural gas issue consumers face is the instability
of gas prices. Our recommendations will help address the issues causing that instability.
Among the questions you should ask prior to selecting a natural gas provider are:
How long has the supplier been in business?
Are they financially stable?
If they are a private company, will they release their financials to you?
How long has the supplier been providing natural gas service in Illinois?
Since programs vary by market, a program considered aggressive in another
market may not be competitive in Illinois.
What is your term length?
What happens upon expiration of your agreement? Does it automatically renew? Under
what terms?
What delivery program are they placing you on? Why?
What rate are they charging you? What are those rates based on?
Under what conditions can you lock your rates?
When and how are the rates locked?
Do you have the option to lock a percentage of your rates?
Do you have the option to lock rates for any time period?
Do they utilize contract quantities? What happens when your usage varies from those
quantities?
Can you take advantage of summer storage savings? If yes, can you assume you invoiced
for the gas when it is purchased?
Will the provider provide details as far as how and when gas is purchased?
How much gas will be stored for you?
When will the gas be stored?
Does the provider offer spot buys?
Can the above options change to address changes in the marketplace?
What measures do they take to manage your account as opposed to simply selling you
gas?
How long has the provider offered the program they are recommending?
We recommend looking at programs with a successful track record.
How has the program performed in the past?
Has it averaged a rate at or below the NGI Index?
Confirm that any analysis offered compares their program to the NGI Index, not a rate
above the NGI Index.
Are there fees for the program?
When does the provider start to charge the fees?
Utility Management Group
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