Delivered price = market index + local basis at your delivery area. Basis reflects transportation/storage to your citygate.
Commercial Natural Gas Supplier Texas
Gas procurement for Texas businesses: how seasonal volatility impacts budgets, what basis means, and where storage and swing provisions can help.
Seasonal Volatility
Winter demand and pipeline constraints can cause price spikes. Staggered terms and hedging help manage the risk profile.
Basis & Delivery
Understand citygate basis, balancing, and swing. Compare offers from Texas commercial gas and electric providers on an apples-to-apples basis.
Plan Types & Considerations
Lock a price per therm for a set term.
- Example: 75,000 therms/year at $0.58/therm. Bill = usage x $0.58 (+ utility delivery).
- Good for: Predictable budgets; simple for teams without trading bandwidth.
Monthly price floats (e.g., NYMEX) plus local basis.
- Example: July: $0.42 + $0.08 basis = $0.50/therm; January: $0.62 + $0.12 = $0.74.
- Good for: Taking advantage of off-peak months; requires governance.
Hedge a portion or key months; leave the rest index.
- Example: Nov-Mar fixed at $0.69 for 50% of load; other months index.
- Good for: Winter risk control with some market opportunity.
Simple Examples in Plain English
Your delivered price = market index + local basis. Basis reflects transportation/storage costs to your delivery area.
Example: If basis is typically $0.10/therm, a $0.55 market month lands near $0.65 delivered (before utility delivery fees).
These terms affect how much you can deviate from forecast without penalties.
Example: A 20% swing lets 10,000 forecasted therms vary between 8,000-12,000 without extra charges.
All examples are for explanation only and not price offers.
Natural Gas FAQs
Fixed simplifies budgeting; index floats monthly and can capture dips. Hybrids hedge key months or portions of load.
Swing sets allowed deviation from forecast without penalties. Storage/balancing terms affect flexibility and charges when usage varies.
Often 30–120 days prior to start. Accounts with higher winter exposure may plan earlier for risk control.
Yes. Many teams fix a portion of winter usage and leave shoulder months index or use seasonal blocks.
A recent bill with usage history works. Interval data helps tailor structure but isn’t required to request quotes.