How We Keep Natural Gas Rates Stable

Planning Ahead Instead of Reacting

Natural gas prices are influenced by many factors, including weather, supply and demand, pipeline capacity, and conditions in the national energy market.

Rather than waiting until demand increases, YCNGA takes a proactive approach to purchasing and managing our natural gas supply. By planning ahead, we're often able to reduce our exposure to sudden price spikes.

Our long-term supply strategy includes:

• Purchasing portions of our natural gas supply in advance through price hedging.
• Maintaining access to stored natural gas for periods of high demand.
• Utilizing peaking services when additional supply is needed.
• Leveraging prepay transactions and other long-term purchasing strategies.
• Strategically releasing unused pipeline capacity to generate additional revenue that benefits our customers.

Together, these strategies help reduce the need to purchase large volumes of natural gas at elevated market prices.

"Our responsibility is to anticipate market changes and position our supply portfolio in a way that helps protect customers from sudden rate increases while maintaining reliable service."

– Jeff Deason, Chief Financial Officer

Understanding Natural Gas Costs

The price customers pay for natural gas includes more than just the cost of the fuel itself.

Natural gas must be produced, transported through interstate pipelines, stored when appropriate, and delivered safely to local communities. The total cost of bringing natural gas to YCNGA is often referred to as the delivered price, which includes the commodity itself as well as transportation, storage, pipeline capacity, and other supply-related costs.

During periods of unusually high demand—such as widespread cold weather across multiple states—these delivered costs can increase significantly. YCNGA's planning strategies are designed to help manage those fluctuations whenever possible.

Higher Bills Don't Always Mean Higher Rates

One of the most common questions we receive is why a bill may increase even when natural gas rates remain stable.

The answer is usually simple: usage.

When temperatures are colder, heating systems run longer and consume more natural gas. Likewise, businesses may use additional energy during periods of increased demand.

Even if the price per therm stays the same, using more natural gas will naturally result in a higher bill.

A Not-for-Profit Utility Focused on Our Community

York County Natural Gas Authority was created by an Act of the South Carolina General Assembly in 1954 and operates as a political subdivision of the State of South Carolina.

Unlike investor-owned utilities:

• We do not operate to generate profits for shareholders.
• We cannot levy or collect taxes.
• We finance system improvements through revenue bonds that are repaid solely from system revenues.
• Any net revenues are reinvested into system improvements, infrastructure, or helping maintain affordable rates.

Because we serve our community—not investors—our decisions are guided by what's best for our customers today and in the future.

Our Commitment to Customers

Energy markets will continue to fluctuate, but our commitment remains the same.

Every day, YCNGA works to provide safe, reliable, and affordable natural gas service through careful planning, responsible financial management, and long-term investment in the communities we serve.

By planning ahead and managing our resources wisely, we're able to help reduce the impact of changing energy markets while continuing to deliver the dependable service our customers expect.