The topic of fuel costs, including the price of natural gas, is popular as we head into the winter heating season. Natural gas prices have been on the decline since the summer due to an increase in natural gas production and storage, as well as a continued reduction in demand due to the weak economy.

The level of natural gas in storage plays a major role in shaping future natural gas prices. A number of factors have resulted in extra production being placed into storage, which has put downward pressure on natural gas prices heading into this winter’s heating season. These factors include only minor interruptions in natural gas production in the U.S. this summer from tropical activity, an increase in the number of drilling rigs, and reduced demand.

Since gas storage is currently above the five year average, according to the Energy Information Agency, now is a good time to re-evaluate your natural gas strategy.

Natural gas is now being offered to municipalities through the MMA’s MunEnergy Natural Gas Program. The MMA and Constellation Energy have a long history of supplying electricity to MMA members, and Constellation Energy is also the endorsed supplier of the MMA’s new natural gas program.

The MunEnergy Natural Gas Program offers a pre-negotiated and legally reviewed and approved gas contract specifically for MMA members. Municipalities can spend little or nothing for legal review, and a 55-day payment term is already established. The program’s efficient sign-up and enrollment process makes it easy to sign up for gas supply.

The MunEnergy Natural Gas Program offers competitive fixed and indexed pricing options for municipalities. The fixed-price option provides more budget certainty, while the indexed option provides flexibility and the opportunity to capitalize on downward market movements. An index-priced contract can be converted to a fixed-price solution at any time.

For more information, contact MunEnergy Program Manager Bill Bartlett at (617) 717-3023 or