Saving $$$ in Deregulated Natural Gas Market

June 28, 2010

The deregulated natural gas market is presenting great opportunities for savings for those commercial accounts that are spending a minimum of $3000 per month.

With the recent drop in natural gas prices over the last year, Hutchinson Business Solutions (HBS) is providing savings from 8% to 20% depending on who your local provider is.

Your local provider currently buys natural gas wholesale and then bills their clients retail pricing. HBS puts our clients in a wholesale position.

When looking at historical pricing over the last year, we show that if you are currently a South Jersey Gas customer, your saving would be about 8%. PSEG and NJ Natural Gas customers would find a 15% savings, while Elizabethtown natural gas clients would be saving 20%.

We are currently advising clients interested in participating in the deregulated natural gas savings to float the market. This will continue to benefit them as long as the market stays flat or continues to go down.

If we were to look at fixing a term contract of 12 to 24 months, we often find that the fixed or locked price is actually higher than the 12 month average you have currently been paying. There are clients that do choose to lock a price, for they do not want to deal with market fluctuations and they are interested in adding certainty to their cost. The only problem that may arise is that if the market remains flat or goes down, they are unable to get out of their contract. Should market prices go up, they will not be affected for the price will remain the same.

Should a client choose to float the market, they will take advantage of the lower market prices and if we see the market start to spike up, they will always have the option to lock a price anytime during the term of the contract.

It has always been our goal to make the client aware of all the options available to them and to ultimately making them comfortable with the decision they choose.

Would you like to know more about opportunities to save in the deregulated natural gas market? Email george@hbsadvantage.com or call 856-857-1230.

We have found that savings is the deregulated natural gas and electric market provide great opportunities to add savings to your company, reducing cost and increasing your bottom line.

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