Locking in gas rate?

[FTL_Ian]

NH Gas has sent me an offer to lock in a per therm rate of $1.4741 for the winter.  How much can therm rates fluctuate during the winter?  Do they tend to go up?  I know nothing about natural gas costs, so what would you do in this case?

[aries]

They often go up

[Rosie the Riveter]

We locked our gas rates -- but if the price of oil continues to go down will the price of nat. gas go down too?

I have to assume, in the winter, demand increases so the price will increase....hence my locking in the price...Although, I'm sure the gas company understands that as well and sets the lock-in price accordingly. I just don't like surprises.

Good Luck with your decision.

Kate

[mvpel]

I'm not going to worry about it too much - some winters you win, some winters you might lose, it all evens out over the long run.  I locked $2.09 or so per gallon for our propane this year.

[d_goddard]

We locked our gas rates -- but if the price of oil continues to go down will the price of nat. gas go down too?

Typically, yes, there is a correlation between the two prices.

Locking in the rate is a good idea for budgeting and planning purposes. I would recommend doing so for your first winter, to make it easier to gague consumption in future winters.

That said, this year, based on the futures market and the reports of new capacity coming online (principal source: The Economist), I'm taking the risk and betting heatng oil prices will go down. It could be an expensive bet, but obviously I would not make it if I did not believe I will probably save money.
We'll see.