The suffocating heat of the past few weeks has been trying to tell you something.
It’s time to lock in a gas contract for the winter.
Consumers can lock in a 12-month natural gas contract this month for the lowest price marketers have offered in years.
And although prices could drop more in September, the recent 24/7 thrum of air conditioners here and around the country argues against that: Power companies have been drawing down the nation’s ample inventories of stored gas in order to keep us cool.
That means “there’s a higher probability of September prices going up,” said Dan Hart, CEO of Coweta-Fayette EMC Natural Gas, which is now selling the cheapest 12-month contract in the state. And even if they do go down, they don't have room to drop much, he said.
The state Public Service Commission is also eyeing this month's gas prices with interest.
Marketers are charging significantly more per therm under variable-rate plans than under fixed-price ones, which is unusual for this time of year, said Mike Nance, the PSC's director of consumer affairs. Variable plans change the therm price each month, based on wholesale prices.
"What we're seeing is a market that really wants to get some fixed-rate contracts locked up," Nance said.
In Georgia's deregulated gas market, most customers buy gas from one of 11 marketers in the state. Only Atlanta Gas Light, which owns the pipes that deliver the gas, remains regulated.
But the gas market does have some rules.
Customers can switch marketers for free just once a year. Customers on variable-rate plans can lock in a long- term contract at any time. Those already under a fixed contract have to either wait out its term, or pay to get out early.
Gas plans available now include both short- and long-term fixed-rate contracts.
According to a PSC analysis of gas prices, Coweta-Fayette's 12-month contract will cost the typical consumer $860 over a year's time.
The most expensive 12-month plan, offered by Georgia Natural Gas, would cost about $100 more than that, the analysis says.
How to shop for a good gas deal
1. Compare prices. Go to www.psc.state.ga.us/gas/pricecard.asp and click on the month of August. Compare standard prices, not one-month-only teaser rates.
2. Compare track records. Go to www.psc.state.ga.us/consumer_corner/cc_gas/scorecard.asp for information on complaints against marketers.
3. Customers can switch marketers once a year with no penalty.
4. Already locked in? Ask your marketer what penalties you'll pay for canceling a contract, to see if switching is worth it.
5. Call the marketer you choose. The marketer will do the rest.
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