Natural Gas choice contracts

[SatinKzo]

Just had a guy come to my door offering to "analyze" my natural gas bill since I could save money by signing a contract for guaranteed price over x amount of months blah blah, etc etc

Anyways, I have seen the deals for years and only ONCE have I actually seen a good deal (for me). But I got to thinking back to a couple years ago when I did some analysis of my families use and looked at the offers out there compared to paying market price and was wondering if anyone here has ever signed up for a contract and had it actually benefit them financially?

Like I said, I have only found one deal that I should have done, but otherwise I'm on the losing end and not just by a little bit if I had done them.

 

[Bob Haller]

better to spend time and money super insulating and sealing your home

 

[SatinKzo]

better to spend time and money super insulating and sealing your home

Well, that should be done regardless of what you are paying for energy.

What I am asking is if anyone who has the choice has actually done it and benefitted. I'm just curious. I have never signed a contract, nor will I unless I have a clear benefit. I do have 1 side benefit of where I work in that we buy LOTS of natural gas futures and I know what prices are going to be (approximately) up to 18 months in the future. Again, never does one of these contract ever save me money.

I just hate how the wording preys on people and their fears of rising energy costs. Prices are rising no doubt and in some areas rising so much that companies like mine are exploring biomass generation and "black liquor" sources.

 

[taylor2767]

Well, that should be done regardless of what you are paying for energy.

What I am asking is if anyone who has the choice has actually done it and benefitted. I'm just curious. I have never signed a contract, nor will I unless I have a clear benefit. I do have 1 side benefit of where I work in that we buy LOTS of natural gas futures and I know what prices are going to be (approximately) up to 18 months in the future. Again, never does one of these contract ever save me money.

I just hate how the wording preys on people and their fears of rising energy costs. Prices are rising no doubt and in some areas rising so much that companies like mine are exploring biomass generation and "black liquor" sources.

I've had contracts for many years and obviously you can save money by locking in your rate particuarly during winters months here in OH. A example would be that I'm locked in at .98-.99/ccf until March 08. Without this rates could be who knows where if it is extremely cold or a major hurricane hits the Gulf. Even without these factors gas will run at least $1.20-$1.30/ccf. So, you can see the savings if you use 200-300 ccfs a month during the winter you could save between $60-$90/month

 

[SatinKzo]

Interesting on the Ohio prices. My prices in the last 18 months have topped at .907 per ccf in May of 2006 and market price has declined since. Plus Michigan does have a price cap that cannot be exceeded per ccf (I think $1.01 per ccf right now). What is sneaky is the choice places all play up the price cap like that is what your current rate is. The BEST deal I can find right now is 18 month contract at .99 per ccf. Not really a deal considering history. Plus I still have to pay my current provider "delivery charges"

I understand the concept and promise of the choice programs, but so far in 6 years, I have only found 1 deal (2 year at .68 per ccf) that was worthwhile, but some of the saving were wiped out by a "sign up" charge.

Thanks for the reply though taylor. It's interesting to read the prices of others and their offers.

 

[taylor2767]

Interesting on the Ohio prices. My prices in the last 18 months have topped at .907 per ccf in May of 2006 and market price has declined since. Plus Michigan does have a price cap that cannot be exceeded per ccf (I think $1.01 per ccf right now). What is sneaky is the choice places all play up the price cap like that is what your current rate is. The BEST deal I can find right now is 18 month contract at .99 per ccf. Not really a deal considering history. Plus I still have to pay my current provider "delivery charges"

I understand the concept and promise of the choice programs, but so far in 6 years, I have only found 1 deal (2 year at .68 per ccf) that was worthwhile, but some of the saving were wiped out by a "sign up" charge.

Thanks for the reply though taylor. It's interesting to read the prices of others and their offers.

hell if I found a rate of .68/ccf I would not hesitate. OH choices are currently at $1.00/ccf at best for 1yr contracts. Typically there is no upfront charges but rather a cancellation charge typically around $50.