It’s not easy to buy the low, but make sure you don’t buy the high.
The Bottom Line
Right now, the market and pricing are telling us that a two or three year fixed rate agreement is the safe and smart choice. Going long, as in buying longer-term fixed rate contracts, is the safe bet right now. With third-party supplier pricing for electric and gas still comparing favorably to 2017 and winter 2018 rates, many customers are pulling the trigger and capturing a near market low, before the tide changes.
What to know about 2018
Today’s prices are low, based on high levels and efficient natural gas production in the US. However, there is a serious concern that the upcoming hot summer may cause higher demand for electricity to power additional air conditioning. This would reduce the amount of gas we have in storage for later use and cause market volatility. If this happens, gas prices may rise this summer and impact winter prices as well. If you have contracts expiring in 2018, we recommend evaluating your future contract now!
Why Act Now
Many property owners and managers are risk adverse. It’s better to capture a 5% guaranteed year to year cost savings than take a risk that could result in a 30% cost increase! We help our clients choose the right plan for their budgets and their risk levels. Right now, the market and pricing are telling us that a two or three year fixed rate agreement is the safe and smart choice.
