# Fixed VS Variable Gas and Electric Rates



## JWC (Nov 6, 2014)

It's time for me to renew my gas and electric contract. I've always done fixed for the longest term they offer. Really having doubts this is the best way to go....

Thoughts?


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## AltaRed (Jun 8, 2009)

Fixed utility rates have a cost to them, i.e. the cost of counterparty contracts, hedging, administration and profit component. Why not accept the going rate the utility passes through? After all, rates do have some regulatory oversight.

I think it would be difficult to get a reasonably priced fixed natural gas contract at this time. After years (decade or more) of low NG rates, it appears North American gas is likely to be worth a lot more, if for no other reason than there are several LNG export facilities allowing North American gas to reach Asian and European markets. IOW, a world commodity akin to oil. I expect to pay a heck of a lot more for the commodity this year than previous years. Tis going to be costly to heat that pool in the shoulder season.


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## Tostig (Nov 18, 2020)

I think it was during the Mike Harris era when gas supply opened up to private companies. A lot of home owners signed up with low fixed rates only to find that the companies they signed with went under when costs started going up.

Maybe that time has passed and the market has weeded out the week. However, beware.


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