The energy market can be difficult to understand, and navigating the energy solutions available for your organization can be challenging. When it comes to energy pricing, it’s important to start with an understanding of the cost components impacting your energy bill.
The energy experts at IGS Energy, the official energy partner of the Dayton Area Chamber of Commerce, cover the components that influence power and natural gas pricing — and offer insights to help you manage these cost components.
Cost components of your energy bill
Before you can determine a strategy for your business, it’s important to understand the multiple components that comprise an energy bill:
Electricity
Energy: This is the main cost component of your bill. Prices are subject to significant fluctuation throughout the day, often in response to natural gas prices.
Capacity: Ensures there’s enough generation at a single point in time to meet your peak demand at the highest power-consumption hours. Capacity was approved for a significant price increase starting June 2025 that will impact your overall spend for electricity. IGS Energy can help you manage this increase with our custom product offerings. Capacity is an unavoidable cost all consumers must pay.
Other factors: Several other components suppliers have little to no control over comprise 5 to 20 percent of your electricity’s overall price. These include things like line loss, ancillary services, and state-mandated renewable energy charges.
Natural Gas
NYMEX: Future pricing for natural gas trades on the NYMEX, the main component of natural gas cost. Prices change throughout the day (sometimes abruptly) in response to significant events that impact supply and demand for natural gas.
Transportation: This component ensures there’s enough space on interstate pipelines to provide natural gas on the coldest day of the year. Rates vary by pipeline but, typically, don’t change much annually.
Basis: This is the price difference between the Henry Hub in Louisiana (a natural gas pipeline that’s the official delivery point for futures contracts on the NYMEX) and a given market. These prices are subject to change monthly or even multiple times daily.
Other factors: There are several components suppliers have little to no control over, including line loss, balancing, and pooling charges, and BTU conversion.
Get in Touch to Explore Your Energy Options
By partnering with IGS Energy, your business benefits from a customized pricing strategy that’s tailored to your unique needs — while offering you greater control over your energy spend.
Whether you’re operating a single location or managing multiple sites, the Dayton Area’s Chamber of Commerce dedicated account manager, Aaron Fields, can help you gain more control over your energy costs. As a leading energy retailer proudly serving businesses of all sizes, we offer traditional as well as green solutions to help customers source and manage their energy.
Learn more about your options for managing your energy costs by contacting Aaron at Aaron.Fields@igs.com or 937.396.7093.
8 N. Main Street | Suite 100 | Dayton, Ohio 45402-1904 | (937) 226-1444
