Commercial accounts with significant electricity and natural gas exposure have a choice: procure each commodity separately, or use a dual-fuel broker process that handles both simultaneously. Both approaches have merit — the right choice depends on your usage profile and procurement goals.
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Side-by-Side Comparison
| Factor | Option A | Option B |
|---|---|---|
| Supplier options | Full market for each commodity | Fewer dual-fuel specialists |
| Price competition | Maximum per commodity | Somewhat limited |
| Administrative simplicity | Two processes, two decisions | One process, one decision |
| Commodity specialists | Access to best-in-class per commodity | Generalist dual-fuel suppliers |
| Combined leverage | Separate volume leverage | Potential combined volume benefit |
| Best for | Accounts with large, distinct needs per commodity | Accounts seeking simplicity |
The Case for Separate Procurement
Electricity and natural gas markets are driven by different factors, have different supplier bases, and have different seasonal patterns. Running separate competitive processes for each allows you to access the full supplier market for electricity (30+ suppliers) and the full market for gas separately — and doesn't force you to compromise on either commodity.
The Case for Dual-Fuel Procurement
Some suppliers offer both electricity and gas on a single contract with a single point of contact. For operators who want to simplify energy management, this can reduce administrative burden. Dual-fuel suppliers may also offer modest volume benefits when procuring both commodities together.
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Natural Gas Procurement Basics
Commercial natural gas supply is indexed to NYMEX Henry Hub plus a basis differential to local delivery. Fixed-price gas contracts protect against winter price spikes. Variable or indexed gas contracts track market movements. The supplier set is different from electricity — we source natural gas quotes from gas-specialist suppliers in your LDC territory.
When Electricity Is the Priority
For most commercial accounts (retail, office, service businesses), electricity is the dominant energy cost. Natural gas may be a secondary cost for heating. In this case, optimizing electricity procurement is the primary focus — gas procurement is a secondary consideration handled through a simplified fixed-price contract.
When Gas Is the Priority
For manufacturers, restaurants, laundromats, and other gas-intensive operations, natural gas can equal or exceed electricity as an operating cost. In these cases, dedicated gas procurement is as important as electricity, and the gas contract structure (fixed vs. indexed, term length, basis differential) deserves the same analytical attention.
Frequently Asked Questions
Do most commercial energy brokers handle both electricity and gas?
Yes. We source both electricity and natural gas supply contracts. For accounts with significant gas exposure, we run both processes simultaneously and present a combined energy cost picture.
Can I use the same supplier for both electricity and gas?
Some suppliers offer both. We include dual-fuel options in our quotes when relevant, alongside commodity-specific options. The choice between a dual-fuel contract and separate commodity contracts depends on which approach produces better pricing.
Is natural gas deregulated in the same states as electricity?
Largely yes, but not identically. Most states with electricity retail competition also have natural gas retail competition (TX, PA, OH, IL, NY, NJ, MA, CT, MD, MI). Some additional states have gas deregulation without full electricity competition.
Should I time my gas and electricity contracts to expire together?
Aligned expirations simplify procurement — you can run both processes simultaneously. But forcing alignment by extending one contract while the other is at a favorable pricing moment may not be optimal. We advise case-by-case.
What's typical for commercial natural gas contract terms?
Most commercial gas contracts run 12–24 months. Annual fixed-price gas contracts are common, particularly for accounts that want to lock in before winter. Multi-year gas contracts are available for larger industrial accounts.