Natural Gas - Structured Procurement Strategy

Constellation's structured procurement strategy offers your business stability in your natural gas costs

Energy markets today have become volatile and complicated. Many factors affect market prices. You can't control the market, but you can manage your risks. If your company seeks more predictable energy costs and a fully integrated natural gas solution that doesn't require your constant attention, consider our Structured Procurement Strategy to make buying your natural gas simpler and more cost-stable.

  • Simple - Constellation will systematically buy approximately 7% of your forecasted natural gas supply needs for each of the 12 months prior to the month of consumption. This creates a fixed cost for a majority of your natural gas use, with remaining demand purchased at market prices. This strategy helps you eliminate the hassle and planning for gas buying decisions while reducing exposure to market volatility.
  • Less Risk - Many successful investors use "dollar cost averaging" as a method to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. The Structured Procurement Strategy applies these principles to the commodities market to reduce your risk. Instead of buying in a lump sum, your natural gas position is built slowly by buying smaller amounts over a period of time, spreading your cost out over time providing protection against market fluctuations.
  • Full Requirements - Full requirements means that one price covers each cost associated with utility city gate delivery on all gas burned. You will not be surprised with added fees or charges from Constellation. Only final delivery to your burner tip through your utility's distribution pipelines is a separate charge from your utility.