Brian White
Municipal Program Director
Freedom Energy
Published: December 14, 2023
Understanding Your Natural Gas Options and Potential Savings
Electricity procurement is a familiar task for many municipalities in New England. Cities and towns often secure aggregate electric agreements not only for their public facilities but also for residents and small businesses. While electricity costs are a significant expense and justifiably get a lot of attention, there’s another side to the energy coin that’s often overlooked: natural gas.
The Hidden Costs of Natural Gas
Most municipalities use over 75% of their annual natural gas between November and April, coinciding with the highest cost period. Despite this, many communities have yet to explore or secure natural gas agreements. This oversight can be costly, especially considering the predictable rate increases Eversource & National Grid every November. These utility rates, which are not fixed, also tend to rise as winter deepens.
Location Matters
Your community’s location and the pipeline it accesses for natural gas can significantly influence costs. Capacity varies among pipelines, leading to different offers even for neighboring towns. This factor is crucial in understanding and managing your natural gas expenses. We’ve seen neighboring towns receive very different offers despite quoting at the same time.
A Volatile Market
Natural gas costs have been so volatile that multiple suppliers are no longer offering fixed price agreements, choosing to leave the New England market entirely. That should scare you! Add in the fact that right now is the best purchasing opportunity we’ve seen for calendar year 2024 over the last 11 months (see graph below) and there’s a lot of incentive to see what’s available.
Common Misconceptions
It costs nothing to look at your options, why not see what’s available? Many communities haven’t shopped for natural gas because of misconceptions about potential savings or its relative expense in the overall budget. However, examining your options is cost-free and worthwhile. Once enrolled in our system, we set up a market watch, enabling quick pricing updates within 24 hours.
Last Winter’s Savings: A Case for Action
Despite a gradual move away from natural gas in new building construction, it remains a significant cost factor. Last winter, our municipal clients saved millions compared to utility rates. Questions around pipeline capacity, potential savings, and agreement duration are vital. NGRID and Eversource announced supply rate increases, now’s a great time to consider your options.
Ready for a Free Analysis?
Contact us for a comprehensive analysis of your natural gas usage and potential savings. Share some invoices with us, and let’s explore how your community can benefit from a well-structured natural gas agreement.
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