A natural gas plan allows your business to choose a supplier for gas supply while the utility continues delivery, pipeline maintenance and emergency response. Plans vary by pricing structure, contract length and exposure to market changes.
What is a Natural Gas Plan?
Natural gas supply plans cover the commodity portion of your gas service. Utilities continue handling delivery, pipeline maintenance and emergency response.
When a Natural Gas Plan Make Sense for Businesses
Businesses often explore natural gas plans when they use gas for heating, cooking, manufacturing or other operational needs, especially where natural gas prices can change seasonally.
Natural gas plans are a good fit for businesses that:
- Operate in states with competitive natural gas supply markets
- Want visibility into natural gas supply costs separate from utility delivery
- Experience seasonal or weather‑driven gas usage
- Are reviewing an existing contract or approaching a renewal period
Common Natural Gas Plan Types
- Fixed Rate Plans
- NYMEX+ Plans
- Custom Plans
These plans secure both components of natural gas supply pricing: the commodity supply (NYMEX) and the basis price. The supply rate remains consistent throughout the contract term. Monthly bills may still vary based on usage.
These plans lock in the basis price while the commodity component follows NYMEX market pricing. Monthly supply costs may vary as market conditions change.
Custom plans can be structured around a business’s specific usage profile or operational needs.
Plan Type Comparisons
| Plan Type | What’s Fixed | Market Based |
|---|---|---|
| Fixed Rate | Commodity + Basis | No |
| NYMEX+ | Basis | Commodity |
| Custom | Varies | Varies |
Term Length Considerations
Because natural gas usage is often seasonal, contract length can play an important role in managing exposure to weather-driven price changes. Shorter terms offer flexibility while longer terms provide longer continuity of supply pricing.
Common Term Lengths
Businesses evaluate natural gas contract length based on heating demand, weather exposure and operational reliance on gas.
Related Resource: Short Term vs Long Term Energy Plans
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What Affects Natural Gas Costs?
Natural gas costs reflect a combination of seasonal demand, weather exposure, supply conditions and the type of contract your business chooses.
Choosing a Natural Gas Plan
The right natural gas plan depends on how your business uses gas, how much price certainty you prefer, the contract length that fits your strategy and your tolerance for market price changes.