What is the NYMEX Plus (Index) product?
There are several components that make up your price, such as natural gas and ancillary services. Consumers who are on a NYMEX Plus (Index) product do not have their natural gas component included and secured with their rate. This cost component is floating and changes every month according to the NYMEX settlement price of natural gas. The plus portion, also referred to as an adder, is the ancillary services components and is the only fixed and secured cost. The final bill, for you as a consumer, for a particular month is created by taking the NYMEX natural gas settlement price plus the adder that your contract has listed.
Each business is unique and so is their energy solution. While the NYMEX Plus (Indexed) product could be beneficial to consumers who have a higher risk tolerance and can withstand the monthly fluctuations of the natural gas settlements, consumers who have smaller budgets or ones that are risk adverse and prefer to have price security, a fixed rate would be their best option for budget certainty. Please contact our corporate office by phone at 888-370-8898 or via email at info@muirfieldenergy.com for a customized quote and solution to your specific needs.
What is the NYMEX natural gas settlement?
NYMEX natural gas settlement prices are established at the close of business on the third business day prior to the end of each month. The settlement price is rounded to the nearest tenth of a cent. Natural gas contracts are traded a month in advance of the current month. For example, in the month of March 2022, the prompt month is April 2022.
Why is the NYMEX Settlement Price important?
If you are on fixed rate product, the NYMEX settlement price is not relevant for you. However, customers on a NYMEX Plus product, which is also referred to as a real time or index product, is important for customers who have a NYMEX Plus product as your overall cost is based on this price.
Is the Natural Gas market volatile?
Yes, the natural gas component is the most volatile piece of your cost. The market has been in an upward trajectory over the past year and is expected to continue due to inflation and slower natural gas production creating supply and demand worries. Below is the historical prices of natural gas as well as a the costs since January 2020.
Muirfield Energy will continue to monitor the energy market. If you would like to learn more about our energy management products and services, please email us at info@muirfieldenergy.com or call our corporate office at 888-370-8898.