PPI Introduces Experimental Regional Natural Gas Distribution Indexes

With the release of data for July 2014, the Producer Price Index (PPI) introduced experimental indexes for regional natural gas distribution. This regionalized structure utilizes existing PPI pricing data to provide an alternative aggregation for natural gas distribution. Geographic indexes are useful because natural gas tends to experience price changes based on local market conditions that result from differences in demand, infrastructure, and weather. Each geographical index represents price changes for natural gas within that region, as defined by the U.S. Census Bureau regions (PDF). Each division is further subdivided into Commercial, Industrial and Residential sectors (data for Natural gas to electric power generators is included in the Industrial components). Current and historical data for this experimental structure is available in the spreadsheet linked below.

Experimental Regional Natural Gas Distribution PPI Data (XLSX)

PPI currently publishes industry data for Natural gas distribution and commodity data for Utility natural gas. Both data series contain component indexes for Residential natural gas, Commercial natural gas, Industrial natural gas and Natural gas to electric power. The weighting for these indexes is primarily derived from value-of-shipments data, currently from the U.S. Census Bureau's 2007 Economic Census, utilizing industry value-of-shipment data for industry weights and wherever-made shipment data for commodity weights. Secondary source data from the Energy Information Administration (EIA) is used to weight the component indexes of both the industry and commodity series. The experimental, regional natural gas distribution indexes rely on regional price and consumption data from EIA as a proxy for individual component weights.

The organization of the indexes for experimental, regional natural gas distribution is based on geography, commodity similarities, and end use of the product regardless of the industry classification of the producing establishment.The structure of the experimental, regional natural gas distribution indexes is listed below.

Structure of Experimental Regional Natural Gas Distribution Producer Price Indexes

  • East North Central
    • East North Central Commercial
    • East North Central Industrial
    • East North Central Residential
  • East South Central
    • East South Central Commercial
    • East South Central Industrial
    • East South Central Residential
  • Mid-Atlantic
    • Mid-Atlantic Commercial
    • Mid-Atlantic Industrial
    • Mid-Atlantic Residential
  • Mountain
    • Mountain Commercial
    • Mountain Industrial
    • Mountain Residential
  • New England
    • New England Commercial
    • New England Industrial
    • New England Residential
  • Pacific
    • Pacific Commercial
    • Pacific Industrial
    • Pacific Residential
  • South Atlantic
    • South Atlantic Commercial
    • South Atlantic Industrial
    • South Atlantic Residential
  • West North Central
    • West North Central Commercial
    • West North Central Industrial
    • West North Central Residential
  • West South Central
    • West South Central Commercial
    • West South Central Industrial
    • West South Central Residential

Tell us what you think

With the release of this experimental data, the PPI is attempting to better reflect the pricing trends seen in the industry under a meaningful format for data users. The PPI is currently soliciting feedback from data users with respect to these experimental, regional natural gas indexes. To provide feedback, please contact Wander Cedeņo at cedeno.wander@bls.gov or 202-691-7897.

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Last Modified Date: June 5, 2015