Falling natural gas prices to help winter heating bills
The plunging price of natural gas is good news for home heating bills this winter, but I don’t see anybody offering deals to lock in a price that reflects the decline. Your best bet is probably to float with BGE’s standard monthly rate instead of locking in a price with a competitive supplier.
Baltimore Gas and Electric passes along a “commodity” gas price that varies with the wholesale market. It also charges a distribution fee.
After popping to $1.58 per therm in July, BGE’s September commodity price is back down to $1.02. (This is the default price everybody pays unless they choose to switch to a competitive supplier.) And unless Hurricane Ike messes with Gulf Coast petro-production the way Hurricane Katrina did, prices should fall further as it gets colder.
At least, that’s what Wall Street says. Last week, in the forward market, natural gas for January delivery was selling for about 85 cents per therm. Gas has followed the price of oil downward after both peaked this summer.
But a one-year deal from Washington Gas Energy Services had a commodity price of $1.32 per therm for BGE customers. (You still pay the distribution fee to BGE.) Even if you’re afraid prices will pop up to $1.58 again or higher, that’s a heck of a premium to pay for the insurance.
Despite the decline, the price of gas still hasn’t fallen to where it was when last winter began.
BGE’s commodity price was between 90 cents and a dollar until April, when it started spiking. People who locked in at $1 per therm – last fall’s fixed price from the independents – missed some savings over the winter but were spared the summer highs.
Comments
Piece of good news for once. If you need help with your electric bills, I found a site that gave me a few tips and info on programs, but I am looking for more.
http://www.helppayingutilitybills.com
was an OK resource. do you have any more advise on programs or ways to get help?
Thanks
Posted by: John | September 5, 2008 11:46 AM
I signed a contract with MXEnergy last November for $0.94/therm. A real good deal!
Posted by: MikeA | September 5, 2008 12:45 PM
In the Bill Oreilly interview of Barack Obama, regarding the discussion
about Obama's energy plan, in response to Bill asking
Barack, what if the development of alternate energy
sources don't deliver. Obama compared his approach
to John Kennedy's space program, and how if you go
for it , the answers will come. But, the distinction between
our space program and our energy challenge is ... If it had taken
us longer than we thought to get to the moon ... or, if we hadn't
gotten to the moon ... no big deal. But, if we put all our hopes
into alternative energy, and it doesn't happen in time ... or, if
it doesn't work, our entire economy, as well as our national
security could end up in ruins. Our country's entire energy
infrastructure revolves around petroleum. 167,000 gas stations,
the 250 million vehicles. Democrats keep citing how long it will take
to get more oil out of the ground. But, even if an alternative
fuel is found tomorrow, how long will it take America to
transition from our existing infrastructure to a completely
new one? In the meantime, people have to get to work, and
goods have to get to market. This is an important reason to
secure our energy needs with oil drilling and mining oil shale,
while we try to develop alternate energy. Obama and
Pelosi also want to dip into the strategic oil reserve, as a way
of pandering to voters, but what if we have a true emergency,
like Hurricane Ike, or Hugo Chavez cuts us off, or Amadinajad
cripples the straits of Hormuz? Obama seems to be
playing fast and loose with our country's future ... gambling
with our future, all based on hope and faith ... with consequences
which could be dire. Obama's plans, or lack thereof, are
extremely irresponsible. Not suprising from a candidate who
does not have the experience, qualifications, or judgement to lead, as
President of the United States.
Posted by: Howard | September 13, 2008 2:10 PM
I live in Pennsylvania& just received a letter from my natural gas carrier offering a Price Secure price of $12.45 per MCF through October of 2010. How does that rate with your "per therm" listing? Thanks!
Posted by: David | September 15, 2008 7:54 PM