Tips, Tricks & Pitfalls

TIPS

The United States is awash in natural gas and oil reserves.

How grand to be energy self-sufficient.

Keep looking forward into the futures market.

This is where you will find trends, excellent future pricing and opportunities.

TRICKS

Not all energy suppliers, brokers and agents are created equal.

Many promote Energy “Choice” but provide energy pricing and programs that are under-water, costing companies more than the utility.

Get a second opinion before making an energy changing decision.

Whether it’s an energy supply commodity contract, or an energy saving / efficiency solution, ask for a second opinion.

Pitfalls

A number of suppliers have gamed the “core” natural gas market in California.

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Pitfall #1

Avoid Multi-Level Marketing (MLM) as their pricing is usually higher than market pricing.

This supplier’s 12-month fixed rate is about $5.00/MMBtu / Current market fixed rate pricing is @ $3.50/MMBtu. Big difference. Beware

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Pitfall #2

Another supplier’s program offers an indexed rate at NGI+50 with a pricing cap of $5.00/MMBtu.
Common market adders for core accounts are +10 or $0.10/MMBtu.
That’s a $0.40/MMBtu over-charge.
Here is a link to NGI indexed pricing for the past 5 years.

Does anyone really expect $5 pricing anytime soon.

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Pitfall #3

Another supplier continually overcharges their customers.
Our last overcharge experience with this supplier was a recent COG (Cost Of Gas) at $1.30/therm or $13.00/Dth.
Overpayment refunds amounting to many thousands of dollars ($25,000 – $60,000) are in process.

These are tremendous over charges for core accounts.

Bottom Line: These suppliers are also operating in other states.

 

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