If you could lock in $8.393 per decatherm for a year, would you?

[spotbird]

That's the gas company's fixed rate schedule for this winter, it looks good today, but I wonder about the long term.

Any thoughts? Thanks.

[Atman]

1. I think a lot of people are going to really sorry

We had an oil company offer to lock in $1.38 last spring, for this winter. Required a pre-payment. How the hell is that guy going to pump 2.50 oil into my house for $1.38? Either he'll go broke first, or...or what else? Not too many other options.

I'd shop carefully and buy as much as you can afford when you think the price is right. Locking in a long term deal might be good if the supplier is going to get a competitive enough price to keep him afloat. Also, if his other customers are paying considerably more than you, something tells me you'll wind up getting hosed somewhere; you'll be pushed to the end of the line, so to speak. Especially should the Iran invasion go as planned, and energy prices soar even further.

[spotbird]

3. It's natural gas

no prepayment required. Due to the Rita threat it's being traded at $12+ today, but that may not last.

[karlrschneider]

2. R U in Oklahoma? Just got the same offer from ONG & I'm debating it.

Last bill was 6.90/deka but there're rumors of a 71% increase...I can't decide whether to gamble either way
:eyes:

[spotbird]

4. Yeah,

Rita has caused it to go up to $12 today, but if things there go better than they think it will drop again. Who knows?

[spotbird]

5. Check this out

[karlrschneider]

6. Thanks. I think I'll take 'em up on it. At least I'll know what to expec

for a year anyway.
K

[Tess49]

7. I signed up. I'm in Oklahoma, too.

I tried to consider our weather outlook for this winter (mild), went to Henry Hub and looked at the futures market, and tried to figure out when ONG bought their gas (no luck). If I had done this last year, it would have cost me $60.00. I went with the fixed rate three or four years ago and saved a bundle. If it turns out to be a bad gamble, the loss won't be huge. I think, under the current circumstances, it is worth taking a chance. By the way, ONG has several comparison charts on their website that are very helpful.

[karlrschneider]

8. I went ahead and signed up too. I figure at least I'll know what it'll

cost for a year...
and I think you're right, even if it doesn't go up as much as conventional wisdom predicts, the loss won't be significant.

[spotbird]

9. Thanks, I'll take a look

With it so high right now, and Rita looming, it seems like a safe bet. Who knows really?