Gaming the gas once more

Oklahoma Natural Gas is reinstating the Voluntary Fixed-Price Plan, a quirky deal made possible by a quirky state law which says they have to pass gas to us customers at cost. From this year’s flyer:

The price you pay for the natural gas you use each month is Oklahoma Natural Gas’ average cost for the gas we’ve purchased under a variety of contracts. The cost-of-gas portion of your bill varies each month based on how much you use and what we paid for that supply.

It’s been fairly warm of late. During the billing period, I used a meager 0.628 dekatherms, worth $3.37. (The rest of my bill, about $40, was service charges plus taxes and such.)

We’ve already bought a portion of our winter natural gas supply at fixed prices, so we know its cost. We’re making that natural gas available to those who wish to enroll in the Voluntary Fixed-Price Plan at $3.945 per Dekatherm for the 12-month period beginning November 1, 2017.

Inasmuch as my last bill shows a Fuel Cost of $5.369/Dth, I expect this will save me a few bucks in the winter. Greatest usage last winter was 11.5 Dth in January; I’m not expecting anything worse than 13 or 14 this time around.

5 comments

  1. fillyjonk »

    16 October 2017 · 1:42 pm

    Maybe I’m overly suspicious, but I look at the “fixed price” plans and the thing like that OG and E offers, and go, “I can’t imagine they don’t come out at least a *little* bit ahead on the deal.”

    I could be wrong, but I’ve never gone for either of the “averaging” plans.

  2. McG »

    16 October 2017 · 2:43 pm

    Mrs. McG and I are all-electric, but before we moved here we had gas for home and water heating and a gas range. We were on what our co-op calls “levelized” billing (still are, for electric), which means averaged based on usage over a period of months previous.

    I imagine the reason they do it this way is, we’re co-owners, not just customers. Whatever “profit” they made would have to be back-disbursed anyway, or maybe used to upgrade infrastructure.

  3. CGHill »

    16 October 2017 · 3:16 pm

    The first year this scheme was offered, I turned it down; I would have come out $62.77 better had I taken it.

    http://www.dustbury.com/archives/401

  4. ms7168 »

    17 October 2017 · 6:14 am

    The thing I am always afraid of is locking in a price and then having it go down and I am locked in to the higher price! I realize that the chances of that happening are small but still! I am also suspicious of “averaging”.

  5. CGHill »

    17 October 2017 · 10:28 am

    More of a worry, I suspect, when gas prices were more than double what they are now.

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