 Buying natural gas in Georgia is more difficult than it needs to be. However, I am going to cut through the clutter each month and give you simple guidance on who to pick and whether to go fixed or variable. April and May are usually my favorite months to go fixed to cover the next heating season. However, it is a toss-up right now whether you should lock in now or go floating rate.
Here's the reason: Natural gas is in good supply at the wholesale level, which would normally indicate that prices would be quite a bit lower than they are right now. At wholesale, natural gas is around $1.05 per therm. That is a big number. If natural gas was, say, 80 cents per therm wholesale, it would be a slam dunk to lock in.
When you buy gas from the marketer they quote you a rate per therm and then add on all their junk fees for the real price. The Georgia Public Service Commission staff does a great job taking all the data from the marketers once a month that breaks down the stated cost and then the real cost. As an example, the lowest cost marketer in April's price report charges $1.18 per therm, but once all the junk fees are added in your actual cost rises to $1.64. The most expensive charges $1.47 per therm with the real cost being $1.98.
The reality is this: If you just choose a marketer based on advertising, you may pay several hundred dollars more per year to heat your home and your water.
Currently one company is clearly the cheapest for both variable and fixed rates with nobody close. That is Walton EMC. If you do go fixed with them and somebody else comes along later at a better price, you can switch from Walton for a $50 fee.
Through April 30, Walton EMC costs $1.18 per therm fixed and $1.15 per therm floating. I've decided to lock in with them this month because natural gas at wholesale has been skyrocketing. Be sure you lock in before the April cycle ends and the rates reset in May.
Every month I will do this commentary for you so that you have guidance on how to make this complicated decision.
Clark
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