Customers have the opportunity to choose between two commodity price options: monthly Index Price Option (IPO) or a term of one or two-year Fixed Price Option (FPO).
Consistent with the market-based concept of the IPO, MNG may reduce the amount of fixed price gas it purchases in the future, which in turn may increase the volatility of monthly gas prices paid by IPO customers. It is not possible to predict the actual impact of this or whether this will result in rates higher or lower than if MNG locked in prices at the same level as in previous years for its forecast IPO throughput.
If you have any questions, please call us at 1-877-226-7427.
The IPO for August 2014 is $0.3842.
The IPO commodity charge will change each month, either up or down, and is calculated based on the New York Mercantile Exchange (NYMEX) closing settlement prices. Essentially, the IPO allows you float with the market price for gas each month.
Effective September 1, 2013 the FPO rate for one year will be $0.8344.
The final FPO price was calculated based on the NYMEX Settlement Price on August 29, 2013. Those who have elected to lock-in will also be notified by mail of the final FPO price.
Customers can select the FPO to “lock-in” the commodity rate component during August for a one or two-year term. Customers who select the FPO will be charged the same monthly commodity price for gas used until the one or two-year term expires.
The 2014 FPO Open Enrollment Period began on August 1 and will end on August 26th at noon.
Starting Friday, August 1, we will provide the FPO estimated rate every weekday. The estimates are based on the previous business day’s Settlement Prices as traded at the New York Mercantile Exchange (NYMEX). The estimates are made available to help you make the decision whether to lock in for an FPO term or to float with the market price, Index Price Option (IPO).
The daily estimated price will not be your fixed price rate, the final fixed price rate will be set on August 28th.
FPO Daily Estimated Rates as traded at NYMEX
|Date||12 Month||24 Month|
|08/01/14||$ 1.1461||$ 1.1507|
|08/04/14||$ 1.1428||$ 1.1486|
|08/05/14||$ 1.1468||$ 1.1517|
|08/06/14||$ 1.1531||$ 1.1568|
|08/07/14||$ 1.1567||$ 1.1600|
|08/08/14||$ 1.1582||$ 1.1627|
|08/11/14||$ 1.1653||$ 1.1675|
|08/12/14||$ 1.2127||$ 1.2145|
|08/13/14||$ 1.2142||$ 1.2154|
|08/14/14||$ 1.2032||$ 1.2076|
|08/15/14||$ 1.1975||$ 1.2007|
|08/18/14||$ 1.1874||$ 1.1930|
|08/19/14||$ 1.1895||$ 1.1945|
|08/20/14||$ 1.2125||$ 1.2159|
|08/21/14||$ 1.2497||$ 1.2542|
|08/22/14||$ 1.2624||$ 1.2662|
|08/25/14||$ 1.2671||$ 1.2720|
|08/26/14||$ 1.2648||$ 1.2679|