BGE natural gas price lowest since 2007
BGE has posted the February "commodity" price for natural gas: 89.71 cents per therm. That's the cheapest for the default BGE product since October 2007. The plunge in market energy costs is starting to show up in BGE's retail prices. Ninety cents per therm is 14 percent lower than BGE's December price and 43 percent lower than the high of $1.58 reached in July. (This is your raw fuel price. Delivery charges are added.)
But the only BGE customers who will benefit from this plunge are those who didn't sign up for a fixed price deal with a third-party supplier such as BGE Home (different but related to BGE), Washington Gas Energy Services, etc. For many customers, BGE Home is still charging last summer's prices.
For anybody stuck with these fixed-price deals (typically you have to lock in for a year), it still might make sense to cancel and go back to BGE's default price -- even if there is an early-termination fee. It's a recession. Don't pay more for energy than you have to. BGE's standard natural-gas price should move even lower in coming months. But you need to switch as soon as you can because it takes a while for the paperwork to happen, and most of your savings will be reaped in colder-weather months.
BGE's electricity price should also eventually move lower, but not as much. And it will take longer. See Saturday's column for more details.
Comments
Jay,
Thanks for keeping the citizens up to date on the BGE prices, etc. Your latest article summarizes the stories from many consumers whose bills have skyrocketed. It is amazing that an experienced utility (with mostly incompetent executives) mad a bet that the prices would keep rising. Why did they not make the bets befoe the prices started to climb.
The unit prices have fallen but most customers will not reap the benefits because the weather would wam up for the adjusted unit prices period.
By the way, we should also start hearing from our dear Governer on the subject matter now that his reelection nears. Probably, as part of your job, you are keeping the tabs on his activities.
On top of all this, the BGE customer reps are generally rude even though rate payers are paying their salaries. I guess, it tells a lot about the company culture.
Please keep up the good work!
Posted by: Harry | February 6, 2009 12:13 PM
Read your article. I have a budget acct. with BGE. I pay the same amont every month. I usually get a reduced bill in Aug. Should I cancel this plan and pay by the month?
Posted by: Arlene Martin | February 9, 2009 7:20 PM
I am concerned that all our bills are outrageous and increasing. I called BGE to ask about it last month and they informed me that there had been no price increase that is was a usage increased and they refused to come out for another reading or explain to me how I could keep track of my own readings. There are no new occupants and I work all day. It doubled from November to December and now this latest bill is over $550 over $100 more than the last bill. Why can't we all get together and force an investigation or something. I have friends that live in other counties with other companies that are having similar problems. They are organizing to fight this why aren't we?
Posted by: A Saood Cheema | February 11, 2009 11:13 PM