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Franklin Plan
Hybrid Strategy - Natural Gas

The Patriot Energy Franklin Plan is ideal for seasonal natural gas users that are looking for stability during the winter months and competitive market pricing during the rest of the year.

This natural gas purchasing strategy is made up of two distinct parts.

  • Part one is a single, fixed price for the contracted volume of natural gas over peak winter months (November - March).
  • The second part is a market-based rate during the remaining off-peak months of the year (April - October).

This strategy can be started in any month, but will carry a 12-month commitment to the competitive supplier. This strategy is attractive if you have a desire to protect yourself during the typically higher-price winter months with a fixed rate, but would rather purchase gas during lower usage months at a competitive, market-based variable price.

During the market-based rate months, you would lock in their "basis" (price for transportation between NYMEX pricing point and utility city gate) at a fixed level.

Key Points

  • Savings - If the market rate goes down when you are in the wholesale portion of your plan your savings will increases. Additionally if the rates increase during your fixed portion you will save as well.
  • Budget Certainty - During the fixed portion of your plan you will know exactly what you are going to be paying.
  • Risk Mitigation - By being able to purchase at fix price during the winter months the costs associated with fluctuations are minimized.
  • 12 Month Terms
  • Usage Bands - If the amount of gas you use in a given month is more than the amount you contracted, the overage may be subject to a higher Market Rate. A "Usage Band" offers a cushion so this is less likely to occur. In addition, often times if you use less gas than your contract states you will be credited the difference.

Franklin Plan Vs. Utility/Supplier

Franklin Plan Graph

   
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