User's Guide to Natural Gas Purchasing and Risk Management

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The Fairmont Press, Inc., 2000 - Technology & Engineering - 243 pages
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The planning which users must undertake if they are to properly manage their natural gas purchases has become quite complex. This book explores the evolution of market changes and helps the reader understand ways of making the buying process more economical and beneficial.

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Developing an Energy Purchasing Strategy
The Role of the Gas Marketer
Choices for Customers
Natural Gas Purchasing Options
Fuel Management in the Real World
Benefits of Effective Fuel Management
Fuels Utilization for Costeffective Energy Management
BackgroundFERC Orders 636 636A and 636B
Understanding and Using New LDC Supply Options
How a Local Natural Gas Distributor
Brooklyn Union Gas Companys
The Gas Industry Standards Board
Meeting the Clean Air
Meeting CFC PhaseOut Requirements with Gas Cooling
The Environmental Benefits of Natural

The Hidden Costs of Doing Business Under Order 636
Spot Market Natural Gas Reliability Under Order 636

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Page 7 - Identify your long-term supply options by considering these questions: • Is this purchase local, regional or national? • Do you want to aggregate all of your facilities, or will individual sites purchase their own requirements? • What degree of reliability is required to keep your operations on track? • Should you tie the purchase of natural gas and electricity together? • Would a Btu contract with fuel exchanges fit your facility's needs? • What, if any, value-added services, eg, conservation,...
Page 4 - This information can be obtained by past energy bills or the local utility. It is information to understand how you are being charged. Understand what the components of the bill are, including demand, transportation, transmission, energy, fuel charges. For electricity, know what time intervals are being used to calculate the peak demand, the times and days considered by the utility to be on-peak and off-peak, and annual ratchets.
Page 4 - Successful energy purchasing requires an in-depth knowledge of your operations needs and the qualifications of your potential suppliers. Awareness of these matters is important even if you're planning to use a consultant to handle this task, in order to direct such personnel and verify their performance. KNOW YOUR NEEDS Develop energy consumption data at each location by account. Lacking such data will make negotiations nearly impossible, and lack of information places the end user at a disadvantage...

About the author (2000)

F. William Payne is currently Editor-in-Chief of the professional journals, Strategic Planning for Energy and the Environment and the Cogeneration & Competitive Power Journal.

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