NStar fixed rate gas plan

[jd-science.livejournal.com]

we're considering using NStar's fixed rate gas plan for this winter, betting that energy prices will go up after the election. anyone have any thoughts on this?

Comments

[terse-scribe.livejournal.com]

I've used Keyspan's equivalent, which I like just because it evens out the bills year-round and I don't go from owing about $50/mo in July to $400/mo in January.

[lissie930.livejournal.com]

We are going to use it, I just looked at one of my winter bills from last year, and their current fixed rate is cheaper than gas was for that bill, so I'm gonna make the bet that energy prices will go up!

[cemeterygates.livejournal.com]

I elected to sign up for the fixed rate gas plan, but I'm unsure whether or not it was wise, as my last couple apartments had utilities included so I can't compare my other Boston experiences.

[schpahky.livejournal.com]

It helps a lot, the catch is that your account needs to be active for at least six months before you can implement prorating. So as long as it's been your (or your roommate's) name on the bill for that long, do it! I had it last year and it was less than $80/month all year total, for a three bedroom. Which was better than coughing up, say, $200 in February.

[chenoameg.livejournal.com]

I think you're talking about a budgeting plan where your payments are averaged out, not a plan where the price per therm is fixed throughout the winter?

[chenoameg.livejournal.com]

At this point my assumption is that NStar is offering the plan because they expect energy prices to drop, and so they think they will make more money if customers agree to a fixed rate plan. I could, however, be mistaken.

[chenoameg.livejournal.com]

I've done a little research into expected natural gas prices, and they're expected to go down this year. Since I can afford to pay the bills even if gas prices do unexpectedly go up, I'm not going to use the fixed plan.

This sort of fixed plan is like price-insurance. What will probably happen is that gas prices will be lower than the fixed rate offered by Nstar, and Nstar will profit.

In the unlikely case that gas prices go up, you won't pay as much because you're on the fixed price plan.

Like all sorts of insurance, if you can afford to self-insure and you're generally an average customer, then you'll save money if you don't buy the insurance.

[chenoameg.livejournal.com]

Oh, I forgot to include the best reference I found:

http://www.eia.doe.gov/emeu/steo/pub/contents.html