Natural Gas Services

Here in Illinois, we are lucky that the natural gas utilities developed facilities to store natural gas underground years ago. The utility rate-payers (you and me) are allocated a portion of this natural gas storage, and the storage maintenance costs are built in to the utility rates. Your company will pay for the storage maintenance costs, whether you use your storage capacity or not. Larger facilities, with greater demand for gas in the winter months, are allocated larger storage capacities.

The storage capacity has significant value to gas suppliers, as they are able to purchase gas at low prices, store the gas, and then sell the natural gas at higher prices. Suppliers may be able to use your storage space in this manner on a daily basis.

Alternatively, your company can use your own gas storage as a hedge against high winter prices by purchasing “extra” gas in the low-priced months, storing the gas and then buying less gas than you burn in the higher-priced months. Your utility rates will not increase if you use your own storage capacity.

Energy Purchasing Services Inc. performs Request for Proposal services for clients interested in receiving the most value for their storage capacity. In addition, EPS provides monthly gas management services for several clients that choose to retain their storage capacity for their own benefit. Management services include monthly usage, storage and cost reporting, as well as daily monitoring of purchasing opportunities.

Energy Purchasing Services, Inc. charges a flat fee for these services. EPS works only for its clients and does not receive any compensation from gas suppliers.

END-USER TIP: Is your company receiving compensation for your storage capacity?

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