Commercial energy / Buyer guidance
Natural gas pass-throughs: distinguish commodity, basis and delivery obligations
Audit gas price inclusions with a component ledger and a volume-sensitive capacity-charge example.
Ask where the quoted gas price stops
A gas offer needs a clearly defined delivery point and price scope. Does the quoted amount cover only the commodity, or does it also cover a regional basis component, specified transportation, fuel, balancing or administration? Does the utility invoice contain other delivery charges? Create a ledger identifying the party billing each component, the unit, the calculation basis and the clause authorizing it.
Constellation's business FAQ distinguishes commodity and basis in gas pricing. It does not specify the delivery point or inclusions for another agreement. Ask for those in writing rather than assuming delivered has a universal meaning.
Separate quantity-based amounts from reserved-service amounts
Copy any fixed reservation or capacity amount independently of the charge per unit consumed. Ask whether unused capacity changes the bill and whether the charge continues during shutdown. Record who bears balancing charges, what exceptions apply and whether supplier and utility adjustments could describe the same underlying amount.
For volume-denominated invoices, obtain the applicable conversion before inserting energy-denominated quotes. EIA's units reference explains energy and physical-volume units. It does not supply a single universally applicable MMBtu-per-Mcf factor for your invoices. Keep the account's actual heat-content calculation with the comparison.
Worked example: the same fixed amount spreads over different consumption
Fictional monthly pricing: commodity is $3.50/MMBtu, basis is $0.60/MMBtu, a specified fuel adjustment is $0.10/MMBtu and a reserved-service amount is $2,000 per month. Assume all four are authorized under this invented agreement and are not duplicated in utility delivery.
At 4,000 MMBtu, the modeled total is 4,000 × ($3.50 + $0.60 + $0.10) + $2,000 = $18,800, equivalent to $4.70/MMBtu. At 2,000 MMBtu with the same inputs, it is $10,400, equivalent to $5.20/MMBtu. The commodity price did not rise. The fixed amount is being spread over fewer units.
If basis alone rises from $0.60 to $1.10/MMBtu at the original 4,000 MMBtu, the modeled total rises by $2,000 to $20,800. This is a sensitivity, not a prediction of regional prices. The example omits utility delivery, taxes and other differences. An actual agreement may bundle, omit or calculate these components differently.
Investigate a changed invoice with four records
Gather the signed pricing schedule, applicable service document, source calculation for the disputed component and invoice quantities. Reconcile the time period and conversion first. Then check whether the supplier has used the agreed quantity basis and any permitted markup. Request a correction calculation that shows both the original and corrected line; a credit without its basis can be hard to reconcile against later statements.
For comparisons, pair this ledger with the gas offer review. Keep an unresolved component visible in the decision record instead of presenting a misleading all-in total.
Sources and limits
The linked sources support component and unit distinctions. All fees, prices and service arrangements above are invented. No universal pass-through entitlement, transport tariff or promised reduction is asserted.