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The Department Of General Services launched the Natural Gas Services (NGS) program in 1987 in order to use the State's tremendous purchasing power to acquire gas for public sector entities at competitive market prices.
The NGS now purchases 29 billion cubic feet (292 million therms) of gas for 170 State and local government customers. The program offers an active risk management program, which focuses on minimizing price fluctuations.
Program Benefits:
- Prepares bid and awards gas supplier contracts
- Handles all gas supply and delivery arrangements
- Provides bill consolidation and quality control -- one bill per month
- Maintains auditable 'paper trail' for all gas purchases
- Offers natural gas information and consulting services
- Monitors gas infrastructure issues and strategy for curtailment protection
- Offers customers customized gas supplies, billing and accounting processes
- Acts as an advocate on relevant issues before the California Public Utilities Commission.
Who Can Participate?
Gas procurement services are available to State agencies, the University of California and California State University systems, Community College districts, cities, counties, and special districts. The NGS program is primarily designed to supply gas procurement services to large gas users--facilities that use more than 250,000 therms per year, known as "non-core" services. NGS program customers include:
- University of California
- California State University
- Community College Districts
- California Department of Corrections and Rehabilitation
- Department of Developmental Services
- Most Executive Agency non-core facilities
- Special districts: wastewater, transit
- 17 counties and two cities, including:
- City/County of San Francisco
- City of Los Angeles
- County of Los Angeles
Contract Options: Customers can participate in either a Multi-Year or One-Year Contract:
Multi-Year Contract
- Customers commit to up to five years of gas purchases. This allows NGS to provide a long-term risk management portfolio to protect against short-term price spikes. Gas is periodically purchased for future delivery when market conditions appear favorable. Purchasing tools include fixed price gas, price caps and collars, separate purchases of gas commodity and interstate transportation (basis), and options. Pool gas not pre-purchased is bought at market index prices. Market prices are extremely volatile. Market tools and strategies are used to reduce volatility and make it easier to predict budget needs.
One-Year Pool Contract
- Uses the same techniques as the multi-year, but with risk management limited to future purchases of no more than one year - for organizations not prepared to make a long-term commitment.
Fees: The current charge for gas procurement services is $.0065 per therm. Fees have been reduced by more than 50 percent in the last ten years as the number of customers grow.
Contact Us:
For more information on this program, and a specific analysis of how it would benefit your facility, please contact:
Pacific Gas & Electric Service Area Customer Service
Becki Rowland-Mosley
Becki.RowlandMosley@dgs.ca.gov
(916) 375-5984
Southern California Service Area Customer Service
Celia Torres
Celia.Torres@dgs.ca.gov
(916) 375-5986
Marshall Clark, NGS Program Manager
(916) 375-5990
Marshall.Clark@dgs.ca.gov |
