Natural Gas Procurement

Standard Power of America offers a several solutions for our clients’ natural gas procurement needs. SPA consults with each client to select the correct plan based on usage profile, level of risk tolerance, and current market conditions.

 

Fixed Rate Plan

This type of natural gas supply contract guarantees the customer a set price for the contracted volume of natural gas over the period of the contract. This contract vehicle enables customers to protect themselves from rising markets and established budget certainty. Fixed Rate Plans are best for customers seeking to avoid sudden spikes in the natural gas market, decrease exposure to costs that may impact their bottom line, and with those with low risk tolerance for price volatility.

 

Basis Plan

Basis Plans are designed for customers who wish to purchase natural gas at market prices, but lock in their "basis" (price between NYMEX pricing point and utility city gate). This product is suited to customers who wish to participate in downward markets but ensure stable transportation rates. Basis Plans work for customers who expect market prices to decline and want to avoid locking in natural gas supplies at current market rates. The customer locks-in a fixed basis and pays for the commodity per the closing price of NYMEX natural gas contract for each month of the contract period. Basis plans are best for customers with a tolerance for market fluctuations.