How to Secure the Lowest Natural Gas Price

December 2016

Every organization wants to optimize its resource management to impact the bottom line. As one of the fastest-growing energy consulting firms in the country, Applied Energy Partners is considered a trusted advisor, helping companies to cut costs via a more competitive energy contract.

The key to securing the lowest natural gas price is understanding where the market currently stands in the context of the past. As of late November 2016, wholesale natural gas is $3.31/Decatherm. That’s more than twice the price of the lowest point this year (March) – $1.64/Dth. Obviously natural gas has been very volatile in 2016, so choosing the right time to buy is critical.

In an effort to determine the best month to buy, we researched the lowest natural gas prices for the past nine years. Viewed against 2016 prices only, current gas prices are relatively high, but viewed in historic terms, $3.31 is just fractionally higher than the nine-year average low point of approximately $2.90/Dth.

Out of the past nine years, four of the months trending for the lowest prices were in December – and only three were in the spring. This suggests that holding an auction in November or December may not be too late in the year – provided cold winter temperatures don’t arrive early and storage levels remain high.

Without question, the most important step for getting the best price for natural gas is to provide your energy consultant with all your account data and usage data – including your projected monthly gas volumes (targets).

If your data isn’t ready to go, it will take suppliers about a week to provide pricing, by which time the price may increase. If your data is complete and accessible at all times, you can get immediate pricing whenever a market opportunity comes along.

Please contact us at 484-324-8010 or customercare@appenergy.com to learn more about how we can help you lower your energy costs.

David Benton

“I was most impressed with the on-line auction process. The Rittenhouse Hotel is delighted to repot a 19% savings over our previous Firm Fixed contract. Our new contract now includes 10% green power, important to our conservation efforts.”

David Benton

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