Natural Gas - Frequently Asked Questions

 

   Can you tell me for sure that 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. FPL Energy Services’ fixed-price contracts help dampen the effect of this volatility on your business and shield your budget from major gas spot market price increases.

   Why can’t I get the price for natural gas that I see listed today on NYMEX?
First 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. Second, natural gas is traded in a futures market; pricing reflects supply and anticipated environmental influences for a period of time in the future, and prices fluctuate significantly based on anticipated market conditions.

   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 and to ask the supplier to provide an example of what your pass-through charges would be for your average usage amount.

   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. You should also 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 FPL Energy Services: We will do it for you – for free!

   Besides price, what else should I consider in choosing a natural gas supplier?
You should choose a supplier that understands and has experience in the Florida market. You should choose a reliable supplier that can show it gained this experience by operating in the Florida market for many years and has the financial backing to serve the market for many years to come. Also, you should choose 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 changes so that you know the decision you make today in choosing a supplier will be the right decision even as market conditions change in the future.