For CBAI member banks, this may be a good time to think about locking in a fixed-price for natural gas.
Among the natural gas marketers serving Illinois, there is a wide range of prices. Because natural gas is a commodity, prices rise and fall throughout the year, sometimes dramatically.
“Natural gas prices finished last week at their lowest price in four months, even as a polar vortex brought the most frigid weather temperatures in a generation to the Midwest,” said Justin Cheger, VP of Operations at Stone River Group, CBSC’s preferred-provider for energy.
Cheger explained bankers have several price options for natural gas. They can select a variable rate contract that allows the cost of gas to float with the market, or a fixed rate for a short or long term that eliminates exposure to volatile markets.
“Today, the best fixed rate is ranging from $ 0.350 to $0.359 per therm and a banker could lock in that rate for a year or two.” Cheger said. He added, “During the past 12 months, the rate per therm has ranged from $ 0.379 to $ 0.442. Locking in now at a low rate might be the best option for community banks and small businesses.”
He noted that banks served by Ameren need to act soon. On March 1, 2019, all Ameren contracts automatically renew for 1year.
For more information or to receive a no-obligation proposal, please contact Justin Cheger at Stone River Group via email at firstname.lastname@example.org or telephone 217/671-9525.
Michael W. Kelley, President
Community BancService Corporation
901 Community Drive
Springfield, IL 62703