Supply Management

  Quantum negotiates spot and long-term gas purchase agreements with suppliers on behalf of its various customers. As a purchaser of large volumes of natural gas, Quantum can procure very competitive prices for reliable gas supplies under terms and conditions tailored to fit the needs of each individual customer. Quantum buys gas under terms agreeable to customers and allocates gas from various supply sources to enhance flexibility and security.

     Because of imbalance penalties initiated by FERC Order 636, customers must have supply flexibility. By aggregating supplies, daily fluctuations can be absorbed in a large supply pool by changing nominations, or shifting supplies from one pipeline to another.

     Quantum is a performance oriented energy supplier, and continually analyzes the marketplace to identify and provide solutions for needs that are inadequately served. Therefore, the company's commitment to supply management can be summarized as follows:

• utilizing extensive supplier contracts to acquire optimum gas and fuel supplies
• evaluating multiple supply alternatives based upon pipeline accessibility and transportation costs
• offering competitive pricing indicative of seasonal fluctuations
• allocating the placement of natural and refined petroleum products through utilization of a viable market portfolio
• coordinating product flow with numerous suppliers, markets, and pipelines