The graph below illustrates how calendar years 2025 – 2027 have traded over the last few years, with the red circle capturing trading from May 4, 2024 – September 4, 2024.

Tracking Market Movements to Meet Municipal Energy Goals

Freedom Energy’s municipal team tracks market movement for existing and potential new clients, sharing opportunities as they arise. When the market drops like it has over the last four months, we often request a full refresh of energy supply offers from all available suppliers. It’s exciting to see how the offers are impacted by this movement, knowing everyone’s trying to secure the lowest price. The offers usually move in the same direction, from one refresh to the next, but not always!

In September, one of Freedom Energy’s Massachusetts municipal clients executed a natural gas agreement after hitting the target rate. In fact, that day’s offer was below the target.

Competition Provides Value for Municipal Clients

Having multiple supplier choices is a tremendous value add for purchasers. Competition, interest in expanding a client base, and wanting to continue serving a client as the incumbent supplier are all excellent incentives. We pre-negotiated the contract terms and conditions for this client and narrowed our pool down to three potential suppliers. We’d been providing weekly updates and tracking the percentage change to capture the target rate, going all the way back to March 2024. Fixed pricing offers fluctuated from a high of $0.8416/Therm to a low of $0.7426/Therm on a 36-month term. The difference in annual cost between these offers was $97,630 or $292,890 over the three-year term.

Freedom Energy’s municipal team executed the client’s new natural gas agreement on a Monday, and here’s where it gets interesting. After learning the market had fallen over the weekend, we refreshed quotes from three suppliers. Two returned with price increases, but the third supplier’s offer dropped significantly. Many factors go into delivering a fixed-rate product, and suppliers have different ways of calculating these components. This is where competition benefits the end user. Whether this supplier had excess capacity or viewed the market more favorably, their reasoning won them the business.

The key takeaway: our client locked in their desired rate and term after months of tracking offers, with no surprises since the contract terms and conditions were already settled. In our municipal portfolio, we work with more than ten suppliers for natural gas and electricity, each with a unique perspective on the market. Freedom Energy remains agnostic when selecting suppliers for our clients, following a simple formula: align the contract terms and conditions, agree on a pricing range and desired term, choose the best offer available the day you’re ready to act (or when your Freedom Energy consultant informs you the target rate has been hit)!

Contact Freedom Energy today to learn how our expert team can help you track market movements and find the most competitive offers for your energy needs.