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MMU's Natural Gas Acquisitions |
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Macon Municipal Utilities (MMU) purchases gas on both a daily and a futures basis. Acquisitions are made based on numerous factors: detailed historical data, local and national weather forecasts, hourly and daily market trends, and other global factors that affect pricing. Our commodity purchases are made through Enbridge Marketing (U.S.), Inc. of Houston, Texas.
In addition to the commodity, we must also acquire transportation services. To ensure gas transportation pipeline capacities are not exceeded, MMU is required to make daily quantity nominations to system operators 1-3 days in advance within a five (5) percent window of accuracy. MMU moves gas on Enbridge’s gas pipeline segment and on Panhandle Energy Pipeline systems.
MMU purchases approximately 500,000 decatherms of gas annually to supply our customers. In addition, we move another 2,100,000 decatherms annually through our system to serve the requirements of Northeast Missouri Grain, LLC and our Macon Energy Center co-gen facility.
Today’s gas market did not exist as we know it prior to Year 2000. Before that time, MMU and other gas providers simply acquired open volumes of gas on annualized basis at costs in the low to mid $2.00 range. This was the norm for the prior 20 plus years and very consistent in pricing. In January 2001, the market saw an unheard-of $10/decatherms cost and, from then on, nothing has been the same. We now see $1.00 price swings in less than an hour and $6.00-$9.00 gas is the norm. Seasonal trends are almost nonexistent. What we spent annually for natural gas ten (10) years ago is now spent in two (2) months.
As with electricity, gas now goes where the prices are highest. Long-term contracts are no longer available due to large market price swings. Two of the largest contributing factors to the new market are global issues and energy trading. Over 90 percent of the gas bought and traded is only on paper and no commodity delivery is ever made. World demands for gas also drive prices to unheard-of levels of a few years ago. Now for the first time, gas prices and electric prices follow each other, both higher than ever before.
The work and effort to enable the customer to have hot water, heat, and lights is unlike nothing before. MMU strives to make our work as transparent as possible to our customers and provide gas at the most economical cost.
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MMU's Natural Gas Distribution System |
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Macon Municipal Utilities taps Panhandle Energy Services’ Moberly natural gas lateral on the southern edge of Moberly. The Moberly lateral serves several Panhandle Energy customers from approximately seven miles north of Columbia along U.S. Highway 63 to and including Moberly at its termination. From that point, Macon reduces the pressure, adds odorant, and moves gas through 26 miles of parallel 6-inch and 8-inch pipe that we own and maintain. In Macon, we again reduce the operating pressure to serve our 2,200 customers throughout approximately 45 miles of distribution pipe.
Macon’s natural gas system is regulated by the Missouri Public Service Commission and has a historical daily peak consumption of 4,168 decatherms or 41,680 hundred cubic feet.
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 | Our Mission |
To provide utility services to our customers as safely, reliably, & economically as possible.
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