Aligning Your Energy Strategy with Market Conditions
A commercial index-price natural gas contract provides your business with ultimate market transparency and flexibility. By allowing your commodity rate to float with current market conditions, your organization can capitalize on downward trends and optimize operating costs when wholesale prices fall. We work directly with your team to develop a customized natural gas procurement plan, helping you achieve your specific physical supply and budgetary goals without locking in a long-term fixed rate.*
How Index Price Natural Gas Works**
Natural gas commodity pricing is highly dynamic, shifting based on seasonal demand, weather and regional pipeline capacity.
With an index price structure, your physical natural gas rate moves up or down in tandem with the public market index.
This means your business may immediately benefit when market prices fall, but you are also exposed to the risk of higher operating costs if wholesale prices rise.
Strategic Risk Management
Market Transparency: Pay a rate that reflects the true, real-time cost of natural gas, avoiding the risk premiums associated with long-term fixed-price contracts.
Maximum Flexibility: Maintain an agile procurement strategy. This structure is ideal for organizations that prefer preserving maximum flexibility to capitalize on any market downturn.
What is the Best Natural Gas Solution for Your Enterprise?
While an index price natural gas solution provides commodity flexibility, energy-intensive operations often require more than a standard supply contract. If your facility manages complex physical logistics, pipeline transport or storage positions, our specialized team can take over the heavy lifting. Discover how our Asset Management Services can help optimize your physical supply chain and firm transportation rights.
* Index Price Product Disclaimer
Under an index price product, the commodity price for natural gas is determined by reference to the applicable market index and will fluctuate over the contract term. As a result, the price paid for natural gas may increase or decrease based on market conditions. In addition to the indexed commodity price, customers may be responsible for other charges associated with retail natural gas supply, including transportation, basis, taxes, utility charges, and other pass-through costs, as provided in the applicable contract.
Actual prices, costs, savings, and market outcomes cannot be guaranteed. Any statements regarding natural gas prices, market conditions, or historical or projected market trends are provided solely for general informational purposes and should not be relied upon as predictions or guarantees of future market performance. Customers are solely responsible for evaluating the suitability of an index price product based on their own business objectives, risk tolerance, and consultation with their own legal, financial, tax, and other professional advisors.
No oral, written, or electronic communication from NextEra Energy Services or its affiliates constitutes a representation, warranty, or guarantee regarding future market prices, the performance of any product, or the realization of any expected economic benefit.
** Not actual data. For illustrative purposes only.
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