Friday, October 10, 2008

Natural Gas Price Plan

I’ve been doing really well keeping my utility bills down this summer.  I’ve changed to fluorescent lighting and turned the hot water tank’s temperature down and I just don’t do air-conditioning unless its above 90 degrees.  I keep a watch on the oil and gas industry and the price fluctuations.  I’m wondering if I’m the only one who has noticed that this week the price of natural gas dropped to $6.70 per BTU.  Oklahoma Natural Gas had an insert in the last bill asking people to sign up to an average price plan to keep their rates low this winter.  Apparently the gas company has already made their winter purchase and I’m sure they only anticipated price increases, not declines.  They bought their inventory prior to the price drop.  They paid $11.048 per dekatherm.  I had to look up and convert what a dekatherm was.  A BTU is just a tiny bit larger than a dekatherm.  In other words they want us to agree to pay twice the amount of what natural gas is currently selling for.  I don’t think so!  I personally think they need to renegotiate their purchase.



1 comment:

  1. I had propane delivered last week and was very surprised, as I saw it had dropped in price. The farm supply I buy from is obviously selling at a higher price because they paid for it at a higher price. It was a lot of money. It's going to be a long winter here in MN.