Natural Gas for your Business
Your business can depend on FPL Energy Services (FPLES) to be there for your natural gas needs now and in the future. As a Florida-based company with more than 10 years of experience, we understand the nuances of the natural gas market and how fluctuating prices and conditions can affect your bottom line.
At FPLES, you are assigned an experienced gas consultant to provide your company with a gas market review and analysis, removing the guesswork from your monthly gas bill. Whether you're a small business owner or a large industrial customer, we work with you to stabilize your natural gas budget.
Natural gas is invisible. Your Natural Gas provider should not be.
For more details on how FPLES experts can assist you with stabilizing your natural gas bill, please call us toll-free today 1-877-375-4674, Mon. to Fri., 8 AM to 5 PM EST.
Receive a free price quote today for your Florida-based business by completing the form below.
Once your information is received, an FPLES consultant will contact you directly to discuss pricing options.
Our customers receive:
- Unparalleled customer service. We provide our customers with their own personal representative to handle billing and customer service inquiries.
- Expert industry advice. Our experienced gas consultant will provide ongoing gas market review and analysis to identify options to help stabilize your budget.
- Competitive pricing options to choose from, including:
- Fixed pricing
- Index pricing
- A reliable supply of natural gas.
- Strong financial backing that ensures we can supply your business today and for the long term.
- Natural Gas Advisor, a monthly e-newsletter providing information and training for your business. Enroll today
Call us toll-free 1-877-375-4674, Mon. - Fri. 8 AM - 5 PM EST.
Natural Gas Unbundling
In the past, most business customers did not have the option of choosing their gas supplier. Fortunately, most customers now have the opportunity to choose who they use.
Learn more:Here is how unbundling works:
- Business customers are able to arrange for a competitive gas supplier to purchase and transport their natural gas.
- The local gas distribution company is still responsible for delivering the gas along local lines to your business, as well as performing emergency repair services.
- The actual cost will vary depending upon the natural gas supplier you select, the amount of natural gas you use and the current regulated cost of natural gas supply purchased by your local natural gas company.
We find that many business customers experience cost benefits when purchasing their natural gas supply from FPLES - and we think you'll agree!
Pricing Options Strategies
FPLES is a leader in providing personal service, industry expertise, and reliable products and solutions. We understand that it makes good business sense for a company to compare our natural gas offer with others. When comparing offers we recommend that you verify that all proposals are based upon the same index (e.g. Inside FERC Gas Market Reports, 1st of month, FGT zone 3).
Learn more:Here are some other "up-front" costs to keep in mind when comparing offers:
- Any "pass-through" charges and exactly what is included in those charges
- Balancing charges
- Retainage charges
- Fuel charges
- Usage charges
- Alert day charges
We offer free of charge, an analysis to see if we can save you money on your natural gas service.
With FPLES, there are no "hidden costs" in our contracts. Our customers know exactly what they're being charged for. Our contracts do not have:
- Monthly service charges
- Customer charges
- Switchover fees
- Deposit charges (most of the time)
Pros and cons of each pricing strategy
The natural gas market can be very volatile. At FPLES, we recommend our customers consider market conditions when evaluating pricing options in order to avoid future market fluctuations.
Fixed Price
- Provides greater control of your energy budget. Allows you to "lock in" up to 90 percent of your forecasted usage, for up to 36 months, with the remainder of your usage to float with market-based pricing.
- Provides stability and security regardless of weather and volatility of commodity financial markets.
- Allows you to budget the percentage of your gas bill you fixed with certainty.
- Usage above your contracted amount is priced at index.
Index/Floating Price
- Price varies monthly based on a standard commodity price index.
- A stable transportation adder is added to the commodity index.
- Allows you to participate and achieve maximum savings from gas market declines.
- Allows you the opportunity to lock into a fixed price when the market dips to a favorable level.
- Requires budget flexibility to take advantage of this option.
Comparing gas suppliers
When you do business locally, you are reinvesting in the Florida community, which is great for all of us. While price is certainly an important driver for choosing a natural gas supplier, so is reliability. When you choose FPLES to be your natural gas provider, you are choosing a local company that is financially sound and can provide your business with a reliable gas supply.
Learn more:When evaluating a supplier, consider the following:
- Is the company financially strong? Ask to review its financials.
- How long has the company been in the natural gas business?
- How much experience does the company have operating with Florida pipelines and Florida gas distribution companies?
The natural gas market can be very volatile. At FPLES, we recommend our customers consider market conditions when evaluating pricing options in order to avoid future market fluctuations. We can help you select the pricing option that best:
- Suit the needs of your business
- Reflect your propensity for risk
- Capitalize on the current market trends
Refer a friend/colleague, through our Refer-a-ThermTM program, and upon their enrollment you will both receive a $75 FPLES Visa® Prepaid Card.
As one of our valued customers, you play an important role in helping us bring value, budget stability and reliable supply of natural gas to businesses like yours. We invite you to refer your friend/colleague to FPLES and share the many benefits we offer as your natural gas supplier.
Click Refer-a-Therm to participate today.
Learn more:Here’s how it works:
- Identify a friend/colleagues’ business who may be interested in receiving the many benefits you receive from FPLES as your natural gas supplier.
- Ask your friend/colleague to contact FPLES. By providing your name and account number, along with their information, they can enroll in the Refer-a-Therm™ program. Below are three ways to enroll:
- Contacting your local natural gas consultant, or by
- Visiting www.FPLES.com/referatherm
- click "Refer-a-Therm"
- complete the form by entering your contact and other general information about your business
- in the "Sub Lead Source" box, located at the bottom of the form, select "Refer-a-Therm" in the
drop down box - type in the name & account number of your referring friend/colleague in the "Sub Lead Other" box
- once completed, click "Price Quote" to submit
- FPLES will provide your friend/colleague a free gas analysis and discuss their pricing options.
- Your friend/colleague, as a new FPLES customer, must sign a minimum 12-month agreement for natural gas supply.
- Upon a signed agreement, you and your friend/colleague will each receive a $75 award card.
FPLES’ Refer-a-Therm program is our way of rewarding you, and your friend/colleague, for being our natural gas customer.
To participate, you must be an existing customer, in good standing, of retail natural gas supply services from FPLES. Your friend/colleague must be a prospective new retail natural gas customer not currently served by FPLES and may not be an affiliate of yours. Consultants and independent contractors of FPLES are not eligible to participate in the program. For official program rules, please review the Program Rules document.
Award card is issued by MetaBankTM, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Cards are issued in connection with a loyalty, award or promotion program. Card does not have cash access and can be used at any merchants that accept Visa debit cards. Card valid for up to 12 months, funds do not expire and may be available after card expiration date, subject to applicable law. Card will be issued in the name of the account holder and is not transferable; cannot be issued to minors. Country restrictions apply and are subject to change. Card terms, conditions, and limitations apply; monthly card account management and post-expiration re-issuance fees may apply, see MyPrepaidCenter.com/site/visa-univ for details.
Gas management services
When you choose FPLES to be your natural gas provider, you can count on our experience, knowledge and expertise in the industry. We are committed to your success. You can trust that we will provide your business with a reliable gas supply and outstanding personalized customer service, all at a competitive price.
Our personal service includes:
- A free analysis of your current gas contract to see if FPLES can save you money
- Coordination of customer contracts and meter balancing services
- 99.9 percent billing accuracy
- Periodic savings reports
- Ongoing regulatory review and analysis to ensure optimum savings for all of your facilities
Your business can be disrupted by the indirect effects of hurricanes. For example, when a hurricane is about to approach, offshore drilling and production platforms are shut down for safety reasons. As areas evacuate, the process plants also are shut down. The path and the power of the hurricane will determine how long the flow of natural gas is disrupted. Even during major hurricanes, natural gas may still flow into Florida. However, it is at a price that may be as much as three time higher than before the hurricane hit. What does this mean for your business and what are your options?
Most natural gas contracts now contain "force majeure" language, which states that if your supplier cannot get gas because of circumstances beyond their control, then they are not in breach of contract. As part of the force majeure language, if gas is available, but at an elevated price because of an emergency supply situation, your FPL Energy Services natural gas contract offers you choices. You have the option of automatically receiving natural gas at any price or being notified of the cost and then deciding whether to accept replacement gas or not. If you decide not to receive replacement gas because of the cost, you will incur a penalty charge from the LDC. FPLES has found that the penalty charge is usually more expensive than the cost of the replacement gas. We believe in safety and in being prepared before the start of hurricane season. Now is the best time to discuss with your natural gas consultant what procedures your business will follow in the event of a hurricane.
We recommend our customers take the following steps:
- Speak to your natural gas consultant or examine your contract to understand your options during a force majeure situation.
- Provide updated contact information to FPLES by calling 1-877-375-4674.
- Pre-determine the highest price you are willing to pay for your natural gas if you opted to not automatically receive replacement gas.
- Develop an operational plan to minimize your gas usage if the situation warrants.
Did You Know?
There are three major components in natural gas supply:
- The extraction of natural gas from the ground (or natural gas production)
- The interstate transportation of gas into a local region by pipeline
- The delivery of gas from the city gate to a business by the local distribution company (LDC)
ADDITIONAL INFORMATION:
Natural Gas Glossary
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
B
Balancing
The process of adjusting physical gas deliveries to match what should have been taken or delivered. This is done by making deliveries or withdrawals of gas from the pipeline. It may be done daily, monthly, or seasonally, depending on whether the pipeline is an interstate system regulated by the FERC, or an intrastate system.
Balancing Penalty
Scheduling and imbalance charges, penalties, fees or cash outs contained in a transporter's tariff, which may be assessed against a shipper for failure to satisfy the transporter's balance, nominations, or scheduling requirements.
BTU (British Thermal Unit)
The amount of heat required to raise one pound of water one degree Fahrenheit. MMBTU is one million BTU's. This is the measurement of quantity in natural gas contracts.
C
City Gate
The physical location where a local distribution company measures and receives gas from an upstream pipeline company.
Commodity Charge
Charges for sales or transportation service based on the volume actually transported or the quantity actually purchased.
Tip: Make sure your price quote includes this charge or ask for a break-out.
D
Daily Transportation Quantity
The average amount of natural gas that your local gas utility estimates a customer served under balancing service will use each day of a calendar month.
Decatherm ( Dth)
A metric unit of heat measurement which equals 10 therms. This is a unit of heat equal to 1 MMBtu.
Delivery Point
The physical point at which gas is delivered by the seller to the buyer. These "points" are more difficult to determine when pooled gas is sold or purchased.
E
Evergreen Clause
A contract provision that extends the term of the contract beyond the primary expiration date. There is usually a month-to-month or year-to-year extension and can be triggered either by affirmative action by one of the parties or by inaction of both of the parties, depending on the contract language; also called a "Rollover" Clause.
Tip: In many cases your contract is automatically renewed unless you specify otherwise.
F
Firm Delivery
A term used in sales of gas to denote an absolute obligation on the seller to deliver gas and the same obligation on the buyer to accept delivery of an agreed-to quantity of product.
Force-Majeure
From the French, now commonly known in the natural gas sales transactions as an unforeseen occurrence beyond the control of the parties (acts of God, strikes, war, etc) to a contract which partially or entirely prevents the performance of one or both parties. Gas sale contracts usually contain a force majeure clause that may list specific instances and specific exclusions from force majeure. Transportation service agreements also contain these clauses.
Tip: This may occur for example, during a hurricane in Florida or the Gulf of Mexico.
Fuel
Gas consumed by a gathering system, processing plant or pipeline as fuel to run the facility. Fuel costs may or may not be included in the cost of transportation in gas sale contracts.
Tip: Make sure this charge is included in the price you have been quoted or ask for it to be quoted so you understand your total cost.
I
Index price
A price usually obtained from an industry publication which is intended to represent an average price of gas delivered to a specific point on the pipeline at or during a specified period of time. Examples of indices utilized in natural gas sales are: "Gas Daily FGT City Gates", NYMEX, and Inside FERC FGT Zone 3.
Interruptible Customer
A customer receiving service under a contract which permits the interruption of service on short notice due to insufficient gas supply or capacity to deliver the supply.
Interruptible Service
Natural gas transportation service that receives the lowest priority. A pipeline may and allow interruption on short notice, generally in peak-load times, for any reason listed in its transportation tariff.
L
Local Distribution Company (LDC)
A local utility that sells natural gas to consumers within the city or region that the utility servers. LDC's are usually regulated at the state level.
Tip: In Florida, LDC's include TECO People's Gas, Florida City Gas Florida Public Utilities, among others.
M
Marketer
A company involved in the business of purchasing and reselling natural gas. The company may be independent or affiliated with the transmission, production or LDC companies. Also called a Broker or Supplier.
Tip: FPL Energy Services is an example.
N
New York Mercantile Exchange (NYMEX)
The first U.S. exchange to trade natural gas futures contracts and has contracts with Henry Hub, Permian, and Canadian delivery.
Tip: NYMEX contracts are sometimes used as an index for pricing natural gas.
Nomination
A request for a physical quantity of gas under a specific purchase or transportation agreement.
O
Onshore Gas
Natural gas found underground. Gas produced in water offshore, but within the 3 mile limit is referred to as onshore gas.
P
Peak Day
The day when the highest delivery requirement during a 24-hour period (8 a.m. to 8p.m.) is placed upon a pipeline system by customer usage.
Peak Demand
The highest demand that a natural gas supplier with flexible demand must meet.
PGA (Purchased Gas Adjustment)
Is the local distribution company's monthly gas commodity charge. Typically this charge varies from month to month based on the LDC's cost of purchased gas.
R
Reserves
Volume of natural gas in the earth which is available for production.
S
Scheduling
The process that consolidates nominations by receipt point, by contract quantity and then notifies the transporters.
Scheduling Penalty
Penalty imposed by pipeline's for the difference between the amount of natural gas scheduled to flow and the amount that actually flowed.
Shipper
The party who contracts with a pipeline for transportation service. A shipper has the obligation to confirm that the volume of gas delivered to the transporter is consistent with nominations. The shipper is obligated to confirm that differences between the volume delivered to the pipeline and the volume delivered by the pipeline back to the shipper is brought into balance as quickly as possible.
Spot Market
A generic reference to short-term purchases and sales of natural gas. Spot market prices are reported by pipelines for various areas by index publications.
Strip"12-Month Strip" is an average of natural gas futures prices for a specified 12 month period, based on natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). Strips may also be purchased for shorter or longer periods.
Tip: When considering the purchase of a fixed price contract, work with your marketer to determine, based upon your needs and market conditions, the appropriate strip length.
T
Take or Pay Clause
A provision in natural gas sale contracts which requires a purchaser to pay for a certain quantity of gas whether it is taken or not. These clauses are no longer commonly used.
Therm
A metric unit of measurement, which is equal to one hundred thousand BTU.
Transportation Costs
The costs associated with the movement of natural gas from one point to another. In addition to the transmission rate, these costs may include gathering rates, fuel and applicable surcharges as set out in the FERC-approved tariff of the transporting pipeline.
Trigger Price
A pricing option in some gas sale contracts which allows one party to price the gas at the exchange-related pricing at the time of their choice.
W
WACOG
Weighted average cost of gas purchased during a given period of time, typically a month.
Z
Zone
A way pipeline companies differentiate between different areas on their pipeline systems. Each pipeline system has a field zone and a market zone. Gas may be delivered into the pipeline's field zone and taken out of the system in market zones. Transportation rates on a single transportation system may vary from zone to zone if the pipeline uses a zone based rate structure.
Tip: FGT Zone 3 is closer to the Florida market area and therefore much of the gas serving Florida is bought out of Zone 3.
Natural Gas FAQs
1. Can you guarantee gas prices are going to rise in the coming months?
2. Why can't I get the price for natural gas that I see listed today on NYMEX?
3. How much could "all pass-through charges" add to my cost for natural gas?
4. How do I compare two natural gas price offers?
5. Besides price, what else should I consider in choosing a natural gas supplier?
1. Can you guarantee gas prices are going to rise in the coming months?
No one can predict whether gas prices will rise or fall. The past several years have shown that the market can be very uncertain and volatile. FPLES offers fixed-price contracts to help dampen the effect of this volatility on your business and shield your budget from major gas spot market price increases.
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2. Why can't I get the price for natural gas that I see listed today on NYMEX?
The NYMEX is primarily a financial reference point or "index" much like the Consumer Price Index. It serves as a price reference point for traders performing financial transactions in the market and it is often not the point of physical delivery of the gas that flows into the Florida market. In addition, natural gas is traded in a futures market. Pricing reflects supply and anticipated environmental influences for a period of time in the future. Prices therefore fluctuate significantly based on anticipated market conditions.
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3. How much could "all pass-through charges" add to my cost for natural gas?
Because no standard definition exists for "all pass-through charges", the impact on your bottom-line cost could vary dramatically. It is very important to ask suppliers what is included in their pass-through charges. FPL Energy Services recommends you ask the supplier to provide an example of what your pass-through charges would be for your average usage amount.
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4. How do I compare two natural gas price offers?
You must make sure that each offer is using the same index, includes the same charges, and is for the same period of time. Evaluate whether the offer gives you the flexibility to modify your price option as market conditions change. The easiest way to compare offers is to just call FPLES. We offer, free of charge, the opportunity to have a trained gas specialist's review exactly what your current or new contract covers.
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5. Besides price, what else should I consider in choosing a natural gas supplier?
FPL Energy Services recommends you choose a supplier that understands and has experience in the Florida market. Can they demonstrate experience a solid financial backing so you know they are able to serve the market for many years to come? Also, we recommend choosing a supplier that will provide you with expert advice, flexible pricing options and terms that will allow you to achieve savings even as the market fluctuates.
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