Burner Tip Prices Overview

Natural gas burner tip prices attempt to account for the cost to procure and deliver gas to a natural gas-fired electric generator. Burner tip prices include both a commodity and a transportation component. The commodity component is the price of natural gas after production from the well and processing for injection into a nearby utility pipeline. The transportation component is the cost of transporting the gas from the injection point near the production basin to the electric generator for consumption. Energy planners and analysts working for regulators and utilities use the estimated burner tip prices for electricity resource planning, since fuel is a major portion of the overall cost to run natural gas-fired turbines.

Power Plant Burner Tip Price Forecast

The June 2020 Model in Microsoft Excel below estimates burner tip prices using annual natural gas prices from the October 7, 2019, North American Market Gas-trade (NAMGas) Model Final Common Case forecasts from 2017 to 2055. Transportation rates have been updated using the latest rate schedules in the pipeline operators’ filed tariffs. Transportation rates for Pacific Gas & Electric, Southern California Gas, and San Diego Gas & Electric have also been updated to account for the "Cap-and-Trade Cost Exemption Credit" and similar CO2 credits, which are identified in their latest rate schedules.

View the 2014 Burner Tip Report and supporting documents, via Internet Archives Wayback Machine.