Winter Rates are Already Climbing in Georgia
It’s typical for natural gas rates to increase in winter with higher demand. However, comparing rates from this month to last year, it looks like rates are already on the rise. Even with higher rates, it’s still a smart move to lock down a fixed rate plan now than to wait for things to go up even further. This year’s higher LNG exports, generator demand from new data centers, and the potential for some deep freezes in January can push rates even higher as winter carries on. So, since rates may rise soon, let’s shop cheap Georgia gas now.
Best 12 Month Georgia Gas Plans
Here are the three cheapest 12 month natural gas plans in Georgia this month. Let’s run through the details and compare the rates to where they were about a year ago.
Firstly, we have the Xoom Energy SureLock 12 at $0.649 per therm. This is about 8% higher than the $0.599 rate from last January. The monthly charge is $5.85 and the ETF is $100.
Secondly, it’s the Constellation 12 Month Home Natural Gas Plan at $0.699 per therm. The rate is about 22% higher than the same plan last January which was $0.569 per therm. The monthly charge is $6.95 and the ETF is $150.
Finally, we have the Georgia Natural Gas® 12 Month Fixed plan at $0.749 per therm. That is about 25% higher than the $0.599 plan from last January. The monthly charge is $7.99-$8.99. Also, the ETF starts at $100 for the first six months then drops to $50 for the remainder of the contract.
Why Natural Gas Rates May Keep Rising
There are three major factors behind the higher rates this year compared to last year. These include increased power demand from data centers, Liquid Natural Gas (LNG) exports have gone up, and lastly, there’s a chilly weather forecast. Unfortunately, these swelling gas rates are not likely to halt any time soon either.
Firstly, the rising number of data centers for AI, crypto, and more, are putting tremendous pressure on the electric grid. This pushes up regional demand and lifts NYMEX futures that traders use to price winter gas. In other words, you don’t even need to have a data center near you to feel their effects on your energy costs.
Additionally, our LNG exports are at record highs. This reduces the volume available for U.S. buyers. The EIA warns that rising LNG exports put pressure on our natural gas prices. Alternatively, last year, our storage numbers were very high and contributed to lower prices.
Finally, according to the NOAA, there is a chance of cold snaps and stronger Arctic outbreaks this winter. Cold snaps drive up heating demand quickly. This in turn forces utilities to scramble and buy more gas at spot prices, causing spikes in rates.
Shop Fixed Georgia Gas Rates Now
At the end of the day, we highly recommend locking in a fixed rate before rates go up next month. Even if you are not prepared to grab a fixed rate plan and need something short term, be sure you switch to a fixed rate before the end of the month to avoid overpaying for natural gas. Visit us today to find your best natural gas plan at https://www.georgiagassavings.com.