Transcript GOT GAS? Natural Gas that is!

GOT GAS?
Natural Gas that is!
Selby L. Lucero, Architect
Facility Manager
Sandia Laboratory Federal
Credit Union.
Anthony Apodaca, NM Sales
Seminole Retail Energy
Services
Introduction


SELBY L. LUCERO
State of New Mexico
– Johnson Administration: Established first
NG Contract for GSD - Building Services
Division.
– Richardson Administration: Contract
expanded to a statewide agreement for
all state agencies, public schools and
universities.

BIG SAVINGS!!!
Introduction


ANTHONY APODACA
Seminole Retail Energy Services
– Approved NM Gas Co. retail supplier.

Current NG provider for SLFCU.
This one is a no brainer!




Do you burn natural gas at your business?
Do you currently purchase natural gas from
a public utility company such as New Mexico
Gas Company?
Do you want to save money with your
energy purchases? (10-30%)
If you answered YES you will be able to
save your business money with a retail
natural gas contract.
New Mexico Deregulation

New Mexico has deregulated the
purchase of natural gas to nonresidential customers.
– You can take advantage of this
opportunity with very little effort.


Public Utility Companies can only profit
from the transportation of NG.
Exclusions: Las Cruces & Raton.
Where does NG come
from?





New Mexico has the third richest natural gas reserves in the
United States.
The two main natural gas-producing areas in our state are the
Permian Basin (SE NM) and the San Juan Basin (NW NM).
Albuquerque and Northern NM get NG from the San Juan
Basin.
In fact, the San Juan Basin is the largest natural gas reserve
in the entire country. Most of the natural gas New Mexico Gas
Company purchases for their customers comes from the
Permian and San Juan Basins.
Most of New Mexico’s Natural Gas is transported west to
California.
What affects NG Prices?

All NG burned in NM is domestic.
– Demand.
– Cold Winter Weather.
– Storage. Injecting versus dejecting.
– Hurricanes.

Can affect supply.
– Heating Oil Prices.

Can affect supply of NG.
What Do You Need to do
to Start Saving?


List of your NG Accounts.
Determine usage by month for three
years.
– More years are better.

Spreadsheet analysis of average usage
by month.
– Determine how much NG you will be
purchasing each month from a retailer.
Strategies To Purchase
NG

Purchase Percentage of Monthly Gas at the
Monthly San Juan Index Price.
– 75 – 80%.
– Lower than monthly NM Gas Co price.
– This is not an energy conservation practice.


Watch the daily market pricing and lock-in a
price for winter months.
Depending on your volumes, more
sophisticated purchasing strategies are
available.
San Juan Comparison
NM Gas Co
San Juan Index
Transportation



NG will continue to be transported by
NM Gas Co. to your existing meter.
NM Gas Co. will continue to charge at
the current transportation rate via the
retailer.
Retailer will provide consolidated
billing.
Exit Fees


Paid to NM Gas Co.
Best time to exit is in the summer
months.
Resources





www.NaturalGas.org
www.nmgco.com/choosing_a_gas_ma
rketer.aspx
NYMEX
Selby Lucero: [email protected]
Anthony Apodaca:
[email protected]
Questions