Commodity Pricing Options

Explaining the Energy Charge

Maine Natural Gas offers two pricing options for the natural gas we supply to you, itemized on your bill as the Energy Charge. This reflects the cost for MNG to purchase natural gas on your behalf as a commodity, and it is separate from the natural gas delivery rate.
 

Fixed Price Option (FPO):

You pay one gas supply price* that will not change for 12 months. The price will take effect Sept.1.

Customers who prefer the FPO must sign up during the enrollment period. This option balances out seasonal peaks and valleys in the price of natural gas, which can help avert surprise high bills during the heating season. The FPO is generally above market prices during the warm-weather months, and below market prices during the cold-weather months. Customers may prefer the FPO if theyare sensitive to higher prices during the heating season, and use relatively little natural gas during the rest of the year.

Index Price Option (IPO):

This variable supply price option is adjusted from month to month to reflect changes in the commodity price of natural gas.

The IPO is the default supply price for customers who do not select the FPO during the August enrollment period.The IPO tracks market prices, which tend to rise during the heating season and fall during the warmer, non-heating months.Customers may prefer this option if they are able to take advantage of the reduced price during the warmer months and can tolerate potentially higher prices during peak winter months.

 

IPO & FPO Historical Pricing from 2005 through 2018 can be viewed by clicking here.

 

If you have any questions, please call us at 877.226.7427

 

Current IPO

The IPO for October 2018 is $0.6054

The IPO commodity charge will change each month, either up or down, and is calculated based on the New York Mercantile Exchange (NYMEX) closing settlement prices. Essentially, the IPO allows you float with the market price for gas each month.

Current FPO

Effective September 1, 2018 the FPO rate for one year will be $1.0387

Customers can select the FPO to “lock-in” the commodity rate component during August for a one year term.  Customers who select the FPO will be charged the same monthly commodity price for gas used until the one year term expires.

The 2018 final FPO price was calculated based on the NYMEX Settlement Price on August 29, 2018.  Those who had elected to lock-in were notified by mail of the final FPO price the week of September 4, 2018.

 

2018 FPO Information

The 2018 FPO Open Enrollment Period is closed.

We provided the FPO estimated rate every weekday in the table below. The estimates are based on the previous business day’s Settlement Prices as traded at the New York Mercantile Exchange (NYMEX). The estimates are made available to help you make the decision whether to lock in for an FPO term or continue with Index Price Option (IPO).  If you are interested in the IPO, your account will remain on the IPO unless you lock in.  If you are currently on the FPO, your account will revert to IPO automatically unless you contact us to enroll in this years FPO. 

2017 UPDATE: MNG’s Tariff no longer provides a three-day grace period for residential customers to select the FPO after September 1, and all new customers after the FPO enrollment period will not have the option of selecting the FPO pricing. All FPO selections must happen within the enrollment period.

2019 FPO enrollment will begin August 1 2019

FPO Daily Estimated Rates as traded at NYMEX

The 2018 Fixed Price Option Open Enrollment Period is closed

The FPO daily estimated price provided below will not be your Fixed Price rate

Date 12 Month
8/1/2018 0.7580
8/2/2018 0.7546
8/6/2018 0.9714
8/7/2018 0.9720
8/8/2018 0.9747
8/9/2018 0.9791
8/10/2018 0.9794
8/13/2018 0.9783
8/14/2018 0.9779
8/15/2018 1.0488
8/16/2018 1.0477
8/17/2018 1.0451
8/20/2018 1.0480
8/21/2018 1.0461
8/22/2018 1.0481
8/23/2018 1.0469
8/24/2018 1.0480
8/27/2018 1.0445
8/28/2018 1.0401

 

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