BGE Keeps Supply Steady with Summertime Gas Acquisition

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Education Smart Energy

Summer, with its sunny skies and warm days, is a welcome break for many after winter’s frigid temperatures. Yet, while many are planning summer leisure activities, BGE’s Gas Supply Team  is already planning for the next winter season with customers in mind. The BGE Gas Supply Team purchases natural gas off-season and stores it to ensure it will be there for customers when they need it most, during the coldest months of the year—at prices that are likely to be much lower that would be available during the winter.

“Think about supply and demand,” says Senior Manager of Gas Supply and Transportation Gina Calvert. “In the winter, when there’s a strong demand for gas, we generally see prices go up. Yet, in the summer, there is a lower demand for gas, so we generally see prices go down. We are able to buy that lower-cost gas in the summer and store it for use in winter, passing savings on to customers, and ensuring reliable year-round service.”

Customers may wonder how BGE stores natural gas. BGE has access to six gas storage fields on interstate pipelines in nearby states. BGE also has two assets in our service area to store gas for use during peak gas load and for managing pressures on the system. Optimizing these assets during the winter help keep costs down for customers as BGE Gas Supply can avoid buying gas during price spikes.

These practices are not just “cool” to learn about—they ensure reliable and affordable gas supply for BGE customers, year-round. As a delivery and transmission company, BGE does not set gas prices. Prices are affected by supply and demand, global and domestic market forces, weather, national storage levels, and operational performance. “On average more than half of our expected winter demand is covered by stored gas,” says Calvert. “Buying gas and storing it during the summer allows us to be prepared for the winter with lowest cost gas for our customers.”