Proactively Manage Natural Gas Commodity Costs
The Minimize Volatile Pricing (MVP) program was first launched in 1997 and has evolved to meet the challenges of a market that has significantly changed over the last 20 years. Our two decades of experience working with customers on these strategies means that today, we provide some of the most effective and transparent strategies in the market.
The MVP program focuses on the commodity (NYMEX) component– the greatest portion of a customer’s total gas cost – to achieve a more stable price over time. Customers can choose from three variations of this time diversification strategy to make smaller purchases over time to reduce long-term volatility risk.
The objective of MVP is not to beat market prices, but rather to make strategic purchases to avoid its extremes. Instead of locking in natural gas costs all in one day, customers can take advantage of opportunities to reduce uncertainty over time.
Program benefits include:
- Complete transparency - all individual purchases made by the program would appear in your online account management tool.
- Strategic purchasing options that include straight-cost averaging or modified-cost averaging approaches in which we buy less when prices are high and buy more when prices are low.
- Enhanced volatility protection by making smaller natural gas purchases each month to create structure and achieve an average cost.
- Proactively manage NYMEX exposure to avoid market price extremes and lets you manage basis prices independently as part of a larger portfolio.