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Dale Cardwell: Lock in natural gas now and save

by Dale Cardwell
Business Columnist

February 09, 2012

Natural gas is a sneaky commodity. You can’t see it, smell it or taste it, but you better believe you pay for it. The fact is, you could end up wasting hundreds of dollars per year if you don’t choose the right provider. So here’s a brief primer on how to do just that.

Rule No. 1: Don’t hire providers that spend a fortune on TV commercials. You’ve probably seen their ads telling you to switch to them and save. If you freeze the TV frame and read the mice-type, (which no one does) you’ll discover you’re not really saving anything. The commercials do, however, make you remember the company’s name when it’s time to sign up, and if you don’t do your homework, you’ll pay way to much for gas.

Rule No. 2: Understand two terms. Companies sell you gas under two plans: fixed and variable. With a fixed-rate plan, you lock in your per-therm gas rate for an entire year. With a variable plan, your rate “floats” up and down month by month. Both plans have advantages. Choosing a fixed rate will allow you to lock in that rate for 12 months. Choosing a variable rate will allow you enjoy monthly savings if natural gas prices fall. Of course, prices can rise, too. Read on to see which plan I recommend.

Rule No. 3: Do a Google search for “Georgia PSC.” There’s no excuse to pay too much. Every month the Georgia Public Service Commission posts an apples-to-apples comparison of marketers’ rates, for both fixed and variable plans. If you track these rates like I do, you’ll be shocked to discover that month in month out, the least expensive marketers are the marketers you’ve never heard of! Of course, it only makes sense because the cheapest providers are the ones who aren’t spending the money you pay them on TV commercials!

Rule No. 4: Pedigree matters. If you follow the apples-to-apples comparison, you’ll find a pattern. Natural gas providers owned by nonprofit electrical cooperatives (like Coweta-Fayette EMC) are consistently the low-cost leaders. The reason is simple. These companies are focused on their mission of service — not profit. Therefore, their margins are consistently leaner.

Rule No. 5: Switch it and forget it. I just completed an exhaustive comparison of options, and have found two strong reasons you should switch to Coweta-Fayette EMC Natural Gas. It might surprise you to learn that while gasoline is close to $3.50 per gallon, natural gas is ridiculously cheap! I asked Coweta-Fayette EMC Natural Gas President Dan Hart why. He sent me a two-page explanation! That’s OK. Because experts like Dan watch the market like a hawk, you don’t have to. (You can read Dan’s report at www.TrustDale.com/naturalgas).

His advice and mine? Go to www.emcgas.com and lock in a FIXED rate as soon as you can. But beware. Your current natural gas provider might charge you a termination fee, and in the true spirit of a company you can trust, Dan Hart and Coweta-Fayette EMC Natural Gas inform me that if you can’t achieve a 14-cent per-therm decrease per month for a year when you switch, it won’t cover your cost if you’re assessed a $100 termination fee. Your second option (to avoid the termination fee) is to switch when your current agreement expires.

For great consumer advice and companies you can trust, go to www.TrustDale.com. Watch Dale Cardwell on TrustDale TV weekends on Fox 5; and don’t miss his new consumer problem-solving radio show starting in January on Saturday afternoons at 5:00 on WSB-AM News/Talk 750 and NOW 95.5 FM.