Natural Gas: Supply Profile

Geographic Diversity

Puget Sound Energy controls its gas-supply costs by acquiring gas under a variety of contract arrangements from a variety of gas producers and suppliers across the western United States and Canada. To obtain gas at the most favorable price, the utility carefully analyzes gas-market trends and conditions, then strategically procures gas under a mix of short-, medium-, and long-term contracts. The melded price PSE pays for natural gas under varied contracts is passed along to customers at cost, with no mark-up or profit for the utility. Another PSE cost-saving measure involves flexible gas-transportation agreements with suppliers that enable PSE to selectively purchase gas from favorably priced locations.

PSE purchases 100 percent of the natural-gas supplies needed to serve its customers. About half the gas is obtained from producers and marketers in British Columbia and Alberta, and the rest comes from Rocky Mountains states.