Natural gas marketers and traders offer a discount to their posted prices in return for prepayment and securing a contract longer than one year. But most tax-exempt entities don't have the funds available to pay a multiple year contract up front. By having GE Capital finance the prepayment, these customers:

• secure lower pricing
• achieve level payments
• allow accurate budgeting

But wouldn't the savings from prepayment get eaten up in interest costs? No, because this program is for tax-exempt entities, the GE Capital Energy Services Group funds the prepayment amounts through private placement, tax-exempt financing. The tax benefits of this type of financing allow for very low interest rates.

For gas marketers and traders, these contracts protect their customer base:

• protection from displacement
• value added service to lower customers cost