Natural gas prices across the U.S. trade at either a discount or premium (positive or negative basis) to Henry Hub natural gas prices (underlying NYMEX natural gas price) located in Erath, Louisiana. Locational natural gas price basis contracts and expands over time. At the same time, natural gas prices increase and decrease throughout the year as natural gas supply and demand fundamentals constantly change.
Natural gas has unique management properties not associated with electric management. NMEC has the ability to buy natural gas when market prices are very low and put the natural gas in storage. The natural gas is withdrawn during periods of high demand (heating demand season), when natural gas prices tend to peak. Unfortunately, electric cannot be stored; it must be used at the same time it is generated (supply must equal demand at all times on the electric grid).
NMEC's proprietary wholesale energy management platform provides natural gas market transparency to optimally manage members' natural gas basis, market prices, and storage opportunities. Additionally, NMEC's energy analysts ensure members' natural gas accounts are on the correct rate class given historical annual usage and audit members' monthly natural gas bills to ensure no billing errors occur.
By leveraging the buying power of a natural gas utility and the natural gas experience of our energy professionals, your natural gas savings opportunities are maximized and your natural gas market risk is minimized over time.