Benefits by Segment
Seller
If you are a net seller of natural gas and/or power you may realize the following benefits when transacting with NOCC:
- Access to credit protected transactions NOCC enters with a variety of buyers across the U.S.
- Low transaction costs vis-à-vis credit sleeves
- Reduced cost of risk capital / reserves held to offset unsecured credit risk
- Your receivables offer risk capital to use to secure other (buy) transactions with NOCC (e.g., power sales offset natural gas purchase requirements)
- More flexible forms of collateral (approved letters of credit vis-à-vis cash)
Buyer
If you are a net buyer of natural gas and/or power you may realize the following benefits when transacting with NOCC:
- Access to NOCC's transactions with various gas suppliers and merchant generators
- More flexible forms of collateral (approved letters of credit vis-à-vis cash)
- Assured delivery at the agreed delivery price
- Reduced average collateral during the delivery period
- Reduced collateral requirements on a consolidated (net) position across all locations, tenors and as between natural gas and power
Trader
If you are a trader (net flat) of natural gas and/or power you may realize the following benefits when transacting with NOCC:
- Access to credit protected transactions NOCC enters with a variety of buyers and sellers across the U.S.
- Reduced collateral requirements on a consolidated (net) position across all locations, tenors and as between natural gas and power
- Low transaction costs vis-à-vis credit sleeves
- Reduced cost of risk capital / reserves held to offset unsecured credit risk
- More flexible forms of collateral (approved letters of credit vis-à-vis cash)
- Your receivables offer collateral value to secure other (buy) transactions with NOCC (e.g., power sales offset natural gas purchases or vice versa)