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Natural Gas Services Program

About The Program

The Natural Gas Services program (NGS) is the primary supplier of natural gas in California to state and local governments. The NGS program is available to any California “city, county, city and county, district, or other local government body, and to any nonprofit hospital or educational institution that expends on public funds.” NGS provides services related to the environmental aspects of energy use and greenhouse gas regulations, renewable energy requirements, and similar programs affecting California's air and environmental quality. Along with its customers, NGS is taking active measures to be early adopters of programs and suppliers for transportation, electricity generation, and biogas developments in the domestic and national market. NGS offers its customers natural gas information and consulting services.

The Natural Gas Market

Natural gas is one of the most volatile commodities traded on the futures market. Price fluctuations due to supply and demand factors, influenced by national and global events, pose significant risk to public organizations with fixed yearly utility budgets. By monitoring and evaluating the natural gas market, NGS makes informed determinations about how much, and at what price, a range of gas market forward purchase structures (futures) should be procured.

How We Work

As a result of deregulation, large users (more than 250,000 therms per year) are now permitted to purchase their natural gas from independent gas suppliers and use the gas utility companies solely for transportation purposes. NGS serves many large public sector organizations that need reliable gas supply, while also arranging for gas delivery and risk management services. NGS follows the public procurement competitive bidding process to select and contract with natural gas suppliers for the exclusive benefit of our customers. NGS handles all gas supply and delivery arrangements, both with the gas suppliers and the gas utility companies. NGS provides bill consolidation and quality control – combining supply and transportation into a single monthly bill – decreasing administrative and record keeping costs. NGS maintains an auditable 'paper trail' for all gas purchases – we understand public audit requirements and have designed our billing and records process to make things go smoothly for our customers when they have to respond to audit information requests.


Program Benefits:

  • NGS services are available to other public sector organizations (state Executive Agencies, UC & CSU campuses, community college districts, cities, counties, and special districts) through an interagency agreement basis, not requiring a bidding process.
  • NGS follows public procurement competitive bidding processes to select and contract with natural gas suppliers for our customers.
  • NGS handles all gas supply and delivery arrangements, both with the gas suppliers and the gas utility companies.
  • NGS provides bill consolidation and quality control – combining both the gas supply and utility gas transportation costs into a single monthly bill – decreasing administrative and record keeping costs.
  • NGS maintains an auditable 'paper trail' for all gas purchases – we understand public audit requirements and have designed our billing and records process to make things go smoothly for our customers when they have to respond to audit information requests.
  • NGS offers our customers natural gas information and consulting services – if you have a question or are trying to develop a specialized service, we work with you to get what you need.
  • NGS monitors gas infrastructure issues (gas supply reliability) and strategies for curtailment protection (what to do when there is a supply interruption).
  • NGS offers customers customized gas supplies, billing and accounting processes.
  • NGS acts as an advocate on relevant issues before the California Public Utilities Commission.

Who Can Participate?

  • 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 and California State University campuses.
  • Community college districts.
  • All executive agency non-core facilities
  • Special districts: waste, water, transit

Customers can participate in either a five-year or one-year contract. These contracts are available on a fixed term or on an evergreen basis. 



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.

Contact Us:

For more information on this program, and a specific analysis of how it would benefit your facility, please contact:


Teri Rohrer
Program Manager
teri.rohrer@dgs.ca.gov
916.375.5990 

Eyas Abdeen
Associate Governmental Program Analyst
eyas.abdeen@dgs.ca.gov
916.375.5426

Noah Montgomery
Associate Governmental Program Analyst
noah.montgomery@dgs.ca.gov
916.376.5274

Justin Reyna
Associate Governmental Program Analyst
justin.reyna@dgs.ca.gov
916.375.5992