Natural gas is dropping in price

Because of where I work, (Serving Our Seniors) I am well aware of the number of older adults who have not been able to afford to stay connected to their utilities.  For that reason, (and because I live in a Styrofoam home), I am especially interested in the price of natural gas and what it’s going to cost to heat the typical home.  Did you see the press release in the Sandusky Register on Thursday about natural gas prices dropping?   

text-autospace:none">This is great news.  According to the press release, natural gas prices (for those people who buy directly from Columbia Gas) will be paying 52 cents per ccf in August.  That is half the price it was last year. It's good for those of us who took advantage of the City of Sandusky’s aggregated contract rate,  which was $1.03 for people under the age of  65.  If you were a senior citizen, you got a price break of 1.02/ccf .   I’ve got to tell you, I was very thankful for this  $1.03/ccf price when the City of Sandusky made this announcement last year.

text-autospace:none">Now let me show you how the 52 cents per ccf compares.  In the last issue of the Meigs Street Messenger, the City of Sandusky announced that it had negotiated a new rate with Direct Energy:  “Effective with the December, 2009, billing cycle, this rate will decrease to $.749/Ccf, excluding taxes and transportation charges.”    At the time I thought “Wow!!  This is great!!!”   But now I’ve learned that the price has dropped even more!

text-autospace:none">Now it’s only fair to tell you that the 52 cents/ccf is a variable rate.  This means the price will fluctuate month to month.   Now you can “shop” around by going to www.pickocc.org.  Click on natural gas, then click on Comparing Your Natural Gas Choices. Then click on Columbia Gas.  You will see a list of “suppliers” selling natural gas at a “fixed rate” or a “variable rate”. Personally, I always go with the fixed rate.  I like knowing what I’m going to pay each month.  So far, the cheapest “fixed rate” for natural gas is 64 cents.  The supplier selling it is Direct Energy. This price – if you sign up now -- is good for one year.

text-autospace:none">As for me, I’m going to gamble and wait until September before I decide.  My hunch tells me that natural gas prices, at a fixed rate, are going to drop a little further.  Anybody want to bet? (For the fun of it.)  What are you going to do?