Don’t get frozen out; examine low natural gas rates now

The air is warm and heavy right now, pushing any thoughts of heating bills to the back burner.

But just as summer reaches a boiling point, natural gas prices are hovering around the lowest rates they’ve been since 2002, according to Dan Hart, president and chief executive officer of Coweta-Fayette EMC Natural Gas.

That means lower monthly bills for a variable rate on natural gas service. It also means it’s a good time — better than any other time of the year — to take a look at a fixed rate, as well. By the time a nip is in the air and you’re ready to turn on the heat, it’s too late.

Heating bills are a major expense during winter months. It’s also one of the bills consumers pay little attention to until late fall. However, the lowest rates each year usually come around Labor Day.

“That’s when people should be in buying-decision mode,” Hart sad. “Most of the time they aren’t until it’s a cold snap.”

Bill Edge, spokesperson for the Georgia Public Service Commission, said there’s no formula for targeting the lowest rates, but in general, early September is a good bet. Second-quarter highs are followed by third-quarter lows. Supply and demand is always a critical factor and right now, supplies are high.

Edge said consumers can make their decisions by first examining their statements.

“You first have to budget,” he said. “You have to know how much gas you use.”

In July 2008, the annual bill for a typical customer on a fixed plan was about $1,500; this year it is $1,000. The average variable monthly bill last July was about $50. Last month, it was about $40.

On May 13, the second quarter high for the wholesale price for natural gas was 45 cents per therm. From 1991-2008, the rate has declined on average from 33 to 38 percent in the third quarter from the second quarter high. If that trend holds, the wholesale therm price could be about 30 cents, Hart said.

On Monday, the wholesale price hit the incredibly low rate of 31.14 cents per therm. Hurricanes and other factors could cause instability — and higher prices — than we’re currently seeing, but right now calm rests in the consumers’ favor.

“The prospect is pretty good that we’ll have some real competitive prices,” Hart said. “I don’t think you’ll get burned either way.”

That isn’t an invitation to switch from variable to fixed, or the reverse. It is a nudge, though, to stop and look at your options.

What you can do now to lower your natural gas bill later:

1. Pay attention to your hot water heater. If you’re in need of a new one, energy efficient appliances will be tax free Oct. 1-4. You might also consider a tankless water heater, which reduces natural gas consumption by as much as 40 percent.

2. Keep your hot water heater’s temperature around 120 degrees. If you’re going to be away for a while, use your water heater’s vacation setting.

3. Take time now to make sure your home is well-insulated and windows and doors are weatherized. If there is a problem, waiting until it’s cold and you’re already using the heat will result in money wasted.

4. Wash your clothes in cold water.

5. Contact your natural gas company now to find out rates, and shop around. Rates do vary from one provider to the next. Companies to consider: Coweta-Fayette EMC, Infinite Energy, Gas South, GasKey, Fireside Natural Gas, Georgia Natural Gas, Stream Energy, MXenergy, SCANA and Walton EMC Natural Gas.

6. If you think you’ll need private assistance, or help from your gas company, don’t wait until wait times and lines are long. Reach out for help now, asking about budget billing and senior citizen plans. You can ask for help anytime of the year, Edge said.