First, the supply and demand. The price gas companies pay for the natural gas they provide for customers is based on supply and demand. Like other commodities, the price fluctuates depending on the impact of factors such as weather, production, inventories, and sources. When inventories get too high, companies reduce production. Unexpected cold weather increases consumption, which then results in inventory fluctuations that may not have been anticipated.  Prices can also be impacted by simply the anticipation of increased consumption such as the speculation that gas will be used instead of coal to run more power plants since it burns cleaner with fewer emissions. Bottom line, many aspects of predicting natural gas pricing is, well, unpredictable.

Predicting the difference between fixed vs. variable rate plans offered by many natural gas providers can also be a challenge. There are price differences between gas marketers and, often, price differences within the same company’s variable rate plans. The Georgia Public Service Commission (GPSC) notes that “Not only do different marketers charge very different prices, the prices that some marketers charge their existing customers may vary greatly. So, even switching plans within the same marketer can save you money.” To help you decide what plan is best for your situation, read more about choosing between fixed and variable plans.

While understanding natural gas prices may seem overwhelming, comparing plans and prices is simple. If you live in a state with deregulated natural gas, it’s easy to compare natural gas pricing between the different companies and their various plans using the “Savings Widget” above.  After you find the best deal, Allconnect can easily establish or transfer your service.

Tags: natural gas prices

This entry was posted on Friday, June 4th, 2010 at 11:38 am and is filed under Natural Gas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.