MADISON, Wis., Oct. 19, 2016 /PRNewswire/ -- This August 2014 article, originally published in the Wisconsin Association of School Business Officials magazine, discusses why many schools lose money while participating in wholesale gas purchasing programs offered by Wisconsin retail gas marketers.
This article looks at both basic contracting procedures and the natural gas supply chain to suggest ways that school officials can improve their programs and actually realize cost savings.
Areas covered include:
- Know your gas price – Many retail gas contracts are actually devoid of pricing. Some retail gas marketers use pricing terms that sound good to the uninformed, but do not tie to industry published pricing and cannot be verified or audited.
- Know your delivery cost – Many retail gas contracts fail to explain the terms "transportation cost" or "basis". Many officials do not know how this component of the gas supply chain can sink their savings faster than the Titanic.
- Know the fee you are paying – Many retail gas contracts fail to identify the fees being collected by the retail gas marketer. In many cases the contracts simply refer to "reasonable" fees. However, without clear contractual language a buyer may end up paying numerous hidden fees that soak up any potential savings.
The bottom line is that through the application of contracting best practices and utilizing the transparency inherent in the very liquid gas markets it is possible to realize savings.
To read the full article please visit us at: http://mepsolutions.org/natural-gas-articles/
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mep-solutions-llc-takes-a-fresh-look-at-natural-gas-contracting-300347933.html
SOURCE MEP Solutions, LLC