pipeline

Natural Gas

Capitol Area Energy offers competitive natural gas rates to commercial and industrial users on the deregulated market. Rates can be distributed through a negotiated transportation agreement or via a financial hedge. This allows CAE to reach virtually any customer within regulated or deregulated regions regardless of the pipeline boundaries.

Natural Gas Retail Suppliers

CAE represents the leading natural gas suppliers in the industry. Our supplier network is based on financial stability, product offering, and competitive rate structure. Our goal is to match your natural gas needs with the best supplier available.

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Natural Gas Transportation Agreement

A natural gas transportation agreement is an arrangement made between the end user, the local pipeline utility company or LDC (Local Distribution Center), and the retail natural gas supplier. The local utility owns the pipeline infrastructure and charges all customers a fee to transport gas through their system. This cost is passed along to customers regardless of their natural gas supplier. When receiving gas through a retail supplier, the energy cost are broken down into a cost for natural gas transport and a cost for the physical natural gas.

CAE will work with you to structure the initial transportation arrangement and will continue to manage the relationship for the life of the agreement.

Financial Hedge Agreement

A financial hedge agreement allows industrial/commercial customers to purchase natural gas based on the current market rates regardless of their pipeline constraints. For example, a customer may purchase a 12-month natural gas futures contract for $6.00 per mmbtu (Million British Thermal Units). This ensures the company a natural gas rate of $6.00 per mmbtu per month for the 12-month period. During this time, should the utility gas cost increase or decrease the customer will settle against the contracted financial hedge price.


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Pricing Options

  • Index
  • Fixed
  • Partial Hedged Contracts
  • Full Hedged Contracts