Natural Gas Rates are at their lowest levels in years, and locking in a fixed rate for winter can save you money.

After this long hot summer, it’s hard to remember what cool temperatures feel like.  But they will be here before you know it, so now is a good time to think about your natural gas service.

SOURCE: Kevin Greiner, President & CEO, Gas South

There are two important questions for getting a good deal on your natural gas service:

1. Should I choose a fixed rate, or a variable rate?
2. If I do decide to go fixed, when should I lock in Natural Gas Rates?

With regard to the question of fixed or variable rates, fixed rates are more competitively priced.  So unless prices really decline or you value the flexibility of being on a variable rate (which allows you to switch or lock in at any time in the future without penalties), a fixed rate is likely to save you money this winter.

That leaves us with the question about when to lock in.  A hot summer has created plenty of demand for electricity – just take a look at your latest power bills.  But despite all that natural gas being burned in power plants to keep air conditioners humming, gas prices have remained fairly stable this summer.  Natural gas production is booming in the US, especially from land-based shale formations.  Moreover, hurricane season has progressed without incident.  With ample supply available, gas prices have started to decline over the last several weeks, and fixed natural gas rates in Georgia are currently at levels that look very attractive.

Another reason to consider fixing your rate soon: when natural gas prices get this low, they’re unlikely to go down much further.  That’s because there are other energy commodities that tend to create a floor price for natural gas.  For example, if gas prices fall to very low levels, natural gas fired power generation can start to displace coal – which increases demand for natural gas and then tends to bring the price for the fuel back up.  Options prices reflect the view that gas prices are more likely to increase substantially than to decline through the end of the year.

For consumers in Georgia, that means that current fixed rates are looking pretty good.  Gas South’s current 12-month fixed rate of 75 cents per therm for Oxygen Financial customers is among the lowest available in the market, and is one of the lowest natural gas rates we’ve ever offered at Gas South.  Oxygen Financial customers can sign up at www.gas-south.com or call us at 1-866-762-6427.  If you’re signing up, use Promotion Code : “oxygen” to receive your discount.  Oxygen customers always receive a two-cent per therm discount off all of our published rates.  Before you decide to lock in a rate, however, do consider your current contract situation.  Most fixed rates carry an early exit fee of $100, so if you’re already in a fixed rate you’ll probably want to wait for your current rate to expire.

Whatever you decide, don’t put your gas service on “auto pilot”.  By locking in a fixed rate with Gas South this month, you can save 15% or more versus what you paid on most variable rates last year.  And that leaves more money in your pocket for other things this winter.

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oXYGen Financial, Inc. co-CEO Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.  .    Unless sources are noted, the information is the opinion of the author.

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