Every month, we offer business customers a snapshot of current and forecasted natural gas rates. Select your rate class below to view or download this month’s forecast. To receive a monthly e-mail notification when the latest update is ready to view, sign up now.
Price per dekatherm of natural gas.
|
| MARCH | LAST | MARCH |
| Industrial/Commercial Firm A | $ 7.05 | $ 7.95 | $ 7.00 |
| Industrial/Commercial Firm B | $ 7.05 | $ 7.95 | $ 7.00 |
| Industrial/Commercial Firm C | $ 7.01 | $ 7.91 | $ 6.96 |
| Small Volume Dual Fuel A | $ 6.09 | $ 6.79 | $ 6.16 |
| Small Volume Dual Fuel B | $ 6.03 | $ 6.72 | $ 6.09 |
| Large Volume Dual Fuel | $ 5.63 | $ 6.33 | $ 5.65 |
Wholesale natural gas prices have been higher during the last six years because of a tight relationship between production and demand. This relationship is expected to continue. The production of natural gas is relatively flat and has not kept pace with growing demand for clean-burning natural gas. As a result, any event that impacts either production or demand, such as hurricanes in the Gulf, record-setting crude oil prices, constraints on other energy sources, or global conflicts, affects the market price of natural gas. In 2005, natural gas prices increased dramatically after Hurricane Katrina disrupted production fields in the Gulf of Mexico.
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In recent history, high storage levels and warmer than normal heating seasons have kept prices relatively stable. According to the Energy Information Administration, the total U.S. energy demand is expected to increase by 1.2% in 2007 and 1.7% in 2008, which will change the relation of supply and demand and could increase prices if supply cannot keep pace. As always, weather will continue to play a big role in future natural gas prices.
We have the expertise and the experience to provide you with the best energy value and we work hard to provide natural gas at a reasonable price.
- We secured ample supplies for the upcoming heating season.
- We work with about 20 of the largest suppliers in the U.S. and Canada and buy gas each month on a competitive bid basis.
- Our supply portfolio includes contracts with varying terms and conditions and lengths.
Natural gas is a publicly traded commodity and, like other fuels, its price is influenced by the market forces of supply and demand. There are multiple factors that influence supply and demand and determine the wholesale price of natural gas.
Supply
Production
Natural gas production, which is primarily in the United States and Canada, has grown but has not kept pace with rising demand. This has resulted in dramatic fluctuations and rising prices since 2000. This trend is expected to continue.
Storage
Storage levels (the amount of natural gas kept underground or in above-ground storage containers) are sufficient for the heating season and above average.
Other
Events like hurricanes, record-setting crude oil prices, infrastructure problems, etc. can affect the ability to produce and transport natural gas.
Demand
Weather
National weather has the greatest impact on natural gas prices. When winter temperatures are colder than normal, demand is higher and, usually causes an increase in natural gas prices. Conversely, warmer winter weather often means lower prices. Prices are affected by weather in Minnesota and by weather in large population centers, especially in the eastern U.S. where usage is especially high in the winter months. Weather also has the greatest impact on customer bill amounts because it determines how much gas they use each month: The colder the weather, the greater the usage.
Economy
Growth in the nation’s economy has driven demand for natural gas. In addition, new residential and commercial growth, new uses of natural gas by industrial companies, electric generation, which creates demand in the summer, and record-setting crude oil prices have all affected demand for natural gas.
The long-term availability of natural gas supplies is sound, and known reserves of natural gas are plentiful and sufficient for many decades. The U.S. has a natural gas resource base equal to about 63 years of consumption at current production levels. Additionally, Canada and Mexico have large reserves that are accessible to U.S. markets. CenterPoint Energy secures ample supplies of natural gas to ensure you have the natural gas you need to heat your home this winter.
To help you plan and make the best use of your energy budget, CenterPoint Energy offers:
- Price forecasting on natural gas and other fuels
- Fuel cost estimates for specific systems to an entire facility
- Equipment specification and cost projections based on energy uses
To learn more about these free services, send us an e-mail or contact your account manager.
