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First of the Month NGI Index

This index reflects a region-specific average price for natural gas, calculated during the bid-week prior to the prompt month, which is when the gas is actually used. The index is a weighted average based on the last three trading days of the previous month and factors in the price, volume, and number of trades. This index pricing model allows for adaptability in your contract quantities before the month starts and is generally considered more volatile.
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Fixed Price

With a Fixed Price contract, both the NYMEX and Basis components of the natural gas price are locked in. Contract terms can range from as brief as one month to as extensive as ten years. Opting for this price structure eliminates all market-related risks associated with the cost of your gas, making your expenditures consistent despite market fluctuations.
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NYMEX

Short for New York Mercantile Exchange, NYMEX is the base price at which natural gas is traded. This price component is linked to the Henry Hub benchmark and is the most liquid market for natural gas. If you choose a NYMEX-only product, you’ll be exposed to variability in the Physical Basis price, which includes the Basis and any applicable Index adder.
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Trigger Price

This is a pre-determined price level that, when reached, enables the conversion from an Index Price to a Fixed, Basis, or NYMEX price. It allows for strategic planning in an environment where the market has potential for downward movement. This feature is generally offered at no additional cost to subscribers.
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Daily Spot Gas Pricing and Balance of the Month

Daily Spot Gas Pricing is variable and updates daily. It is often chosen by end-users who have unpredictable gas consumption patterns. The Balance of the Month (BALMO) price is a stabilizing feature that can be executed during the current month, offering a fixed rate for the remaining days of that month.
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Physical Basis

This represents the full cost to deliver gas to your location, exclusive of the NYMEX price. It encapsulates both the Basis and, if applicable, the Index adder. When you opt for a Physical Basis product, you’re only subject to fluctuations in the NYMEX portion of the price.
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Natural Gas Broker

A natural gas broker acts as an intermediary between your business and energy suppliers. They leverage industry knowledge to negotiate contracts, aiming to secure the most favorable rates for your natural gas needs. Their expertise streamlines the procurement process, saving you time and money.
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Energy Procurement

This term refers to the structured process of sourcing and purchasing energy. Energy procurement involves various activities like market analysis, supplier negotiation, and contract management, all designed to meet your business’s unique energy needs cost-effectively.
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Fixed-Rate Contract

In a fixed-rate contract, the price you pay for natural gas remains constant over the agreement’s term. This setup offers predictability in budgeting but also means you won’t benefit from any downward market fluctuations during the contract period.
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Regulatory Compliance

This means following all the laws and rules about buying and using natural gas. Staying compliant ensures your business operates legally and avoids potential fines or legal issues.
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Variable-Rate Contract

With a variable-rate contract, the price you pay for natural gas can change based on market conditions. While this type of contract can offer savings during low-demand periods, it also exposes you to potential price hikes.
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Commodity Risk

This refers to the financial risks associated with changing natural gas prices. In business, understanding commodity risk is crucial for budget planning and financial stability, as gas prices can fluctuate based on a variety of factors.
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Demand-Side Management

This strategy focuses on reducing energy consumption on the user’s end. By implementing energy-efficient measures, you can lower your natural gas use and, consequently, your energy bill.
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Load Profile

Your load profile is like a graph that shows how much natural gas your business uses at different times. Understanding your load profile can help in planning better energy procurement strategies.
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Baseload

The term baseload refers to the minimum amount of natural gas your business needs to keep running smoothly. It’s the level of energy that you’re going to use no matter what, even during off-hours.
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Peak Load

Peak load is the maximum amount of natural gas your business uses when demand is at its highest. Knowing your peak load helps in better contract negotiation and planning for those times when you need more energy.
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Therm

A therm is a unit that measures heat energy. In the natural gas industry, it’s often used to specify how much gas you’re using, which then determines your bill.
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Megajoule (MJ)

Similar to a therm, a Megajoule is another way to measure the amount of natural gas you’re using. It’s a unit that helps standardize energy consumption for easier comparison and billing.
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Futures Contract

This is an agreement to buy or sell natural gas at a set price on a future date. Futures contracts help businesses plan for the long term by locking in prices today for future use.
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Supply Chain

The supply chain is the entire process that gets natural gas from its source all the way to your business. It includes everyone and everything involved—like suppliers, transporters, and storage facilities.
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Rate Schedule

This is a document that lays out all the costs involved in your natural gas service. It lists the different rates and fees so you know exactly what you’re paying for.