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Ultimate Energy Advisors, L.L.C. — 6922 Flint Cove Drive — Dallas TX 75248 For the ULTIMATE in Energy Services |
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Gas Index Contract |
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Product Summary
Gas Index or Heat Rate is sold with a fixed market adder. Cost of power is the contracted heat rate multiplied by the natural gas price on the NYMEX Henry Hub plus the fixed retail adder in the contract. TDSP (delivery charges) and taxes are passed through with no mark-up. |
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Despite the seeming complexity, the billing is highly simplified. The formulas for a heat rate contract are: Heat Rate = Power/Gas Gas = Power/Heat Rate Power = Heat Rate X Gas All the uplift charges are contained in the Fixed Price Retail Adder. Delivery Charges and taxes are passed through without a mark-up. Can be used in combination with other contracts to maximize price control.
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● You have the option to lock down prices for a specified portion of the contract term to take advantage of favorable market conditions. ● You can convert to a fixed price product at any time. ● Less risk than a floating index product (MCPE). ● Prices for natural gas spot and futures are transparent and can be viewed on the NYMEX. |
