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GOT GAS? Natural Gas that is! Selby L. Lucero, Architect Facility Manager Sandia Laboratory Federal Credit Union. Anthony Apodaca, NM Sales Seminole Retail.

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Presentation on theme: "GOT GAS? Natural Gas that is! Selby L. Lucero, Architect Facility Manager Sandia Laboratory Federal Credit Union. Anthony Apodaca, NM Sales Seminole Retail."— Presentation transcript:

1 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

2 Introduction SELBY L. LUCERO SELBY L. LUCERO State of New Mexico 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!!! BIG SAVINGS!!!

3 Introduction ANTHONY APODACA ANTHONY APODACA Seminole Retail Energy Services Seminole Retail Energy Services –Approved NM Gas Co. retail supplier. Current NG provider for SLFCU. Current NG provider for SLFCU.

4 This one is a no brainer! Do you burn natural gas at your business? 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 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%) 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. If you answered YES you will be able to save your business money with a retail natural gas contract.

5 New Mexico Deregulation New Mexico has deregulated the purchase of natural gas to non- residential customers. New Mexico has deregulated the purchase of natural gas to non- residential customers. –You can take advantage of this opportunity with very little effort. Public Utility Companies can only profit from the transportation of NG. Public Utility Companies can only profit from the transportation of NG. Exclusions: Las Cruces & Raton. Exclusions: Las Cruces & Raton.

6 Where does NG come from? New Mexico has the third richest natural gas reserves in the United States. 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). 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. 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. 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 Mexicos Natural Gas is transported west to California. Most of New Mexicos Natural Gas is transported west to California.

7 What affects NG Prices? All NG burned in NM is domestic. All NG burned in NM is domestic. –Demand. –Cold Winter Weather. –Storage. Injecting versus dejecting. –Hurricanes. Can affect supply. Can affect supply. –Heating Oil Prices. Can affect supply of NG. Can affect supply of NG.

8 What Do You Need to do to Start Saving? List of your NG Accounts. List of your NG Accounts. Determine usage by month for three years. Determine usage by month for three years. –More years are better. Spreadsheet analysis of average usage by month. Spreadsheet analysis of average usage by month. –Determine how much NG you will be purchasing each month from a retailer.

9 Strategies To Purchase NG Purchase Percentage of Monthly Gas at the Monthly San Juan Index Price. 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. Watch the daily market pricing and lock-in a price for winter months. Depending on your volumes, more sophisticated purchasing strategies are available. Depending on your volumes, more sophisticated purchasing strategies are available.

10 San Juan Comparison NM Gas Co San Juan Index

11 Transportation NG will continue to be transported by NM Gas Co. to your existing meter. 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. NM Gas Co. will continue to charge at the current transportation rate via the retailer. Retailer will provide consolidated billing. Retailer will provide consolidated billing.

12 Exit Fees Paid to NM Gas Co. Paid to NM Gas Co. Best time to exit is in the summer months. Best time to exit is in the summer months.

13 Resources rketer.aspx rketer.aspx rketer.aspx rketer.aspx NYMEX NYMEX Selby Lucero: Selby Lucero: Anthony Apodaca: Anthony Apodaca:

14 Questions


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