How to Land the Cheapest 12 Month Gas Rate Near Me?
If you’re looking for a great 12 month gas rate in Valdosta, there’s one tempting trick you don’t want to fall for. Our Atlanta Gas Light (AGL) customers might have heard the benefits of jumping off plans in spring to make savings on cheap shoulder month rates. However, for many 12 month plans, that’ll mean coughing up for early termination. Subsequently, this extra cost might just turn the treat of cheaper rates into a money-wasting trick.
Save When You Switch Gas Plans
What do we mean? Well, let’s assume you go for the cheapest 12 month gas plan on the market: XOOM Energy’s SureLock 12. This plan comes with a 49.9 cents per therm rate, a $5.85 monthly recurring charge, and a $100 early termination fee. So, should you stay with this all year, or are you better off switching to a new plan in the spring? Let’s see how these two scenarios play out!
Scenario 1: You Stay on the Cheap 12 Month Rate
Firstly, what will 12 months on SureLock 12 cost you? Well, the Georgia Public Service Commission puts the annual average household therm usage at 717 therms. So we’ll plug this in for our calculations.
12 Months on SureLock 12:
49.9 cents per therm x 717 therms = approx. $358 therm annual expense
$5.85 monthly recurring charge x 12 = $70
$358 therm expense + $70 in monthly charges = $428 total annual cost
Easy breezy! So that’s $428 for 12 months in Scenario 1. But what about your other option?
Scenario 2: You Switch to a Cheaper Rate
So here’s where it gets tricky. Let’s say you find a new 6 month plan with a lower 39.9 cents per therm rate in spring. So you need to factor in 6 months on SureLock 12, plus the cost of switching, plus 6 months on this new deal. We’ll use 359 therms here for the 6 month calculations (that’s half of the 12 month estimate of 717 therms).
First 6 months on SureLock 12:
49.9 cents per therm x 359 = $179 therm expense
$5.85 monthly recurring charge x 6 = $35
$179 therm expense + $35 in monthly charges = $214
Early Termination Fee: $100
Total 6 month cost: $314 or $52.33 per month.
Second 6 months on the Cheaper Plan:
39.9 cents per therm x 359 = $143 therm expense
$5.85 monthly recurring charge x 6 = $35
Total 6 month cost:
$143 therm expense + $35 in monthly charges = $178 or $29.66 per month
Total 12 month cost:
$214 for first 6 months + $100 early termination + $178 for second 6 months = $492
So that’s interesting! At first glance, it looks like the cheaper rate doesn’t save you enough over 6 months to cancel out the $100 you’ll be paying for early termination. In fact, compared to sticking with the SureLock 12 plan, the whole switching strategy appears to cost more by a full $64! But, the problem is this approach ignores how the new plan’s savings offset your costs.
Where are the Gas Plan Savings?
Paying a lower rate saves you money. So, the amount you save can be used to offset the $100 charge for the ETF. If we compare the monthly costs of the two six month periods and factor in the savings per month, we see very different results:
First 6 months on SureLock 12 + $100 ETF cost per month: $52.33 per month.
Second 6 months on new plan cost per month: $29.66 per month
Amount saved per month on new plan: $22.67
Number of months to pay back ETF= $100/$22.67 = 4.4 months.
So, at the end of the second 6 months, not only do you pay back the $100 ETF, but you also save $36.27!
Shop Cheap 12 Month Gas Rates Now!
So in summary, Valdosta natural gas customers need to pay attention before chasing those cheap rates! Always be aware of how much early termination will cost you. So while switching does save you money, be careful when it comes to choosing your new plan. Do the math! After all, there are far more expensive ETFs out there that will wipe out any potential savings from a cheaper short term plan. That said, however, the SureLock 12 plan winds up being a great money saving option! So grab this 12 month gas rate in Valdosta now, with www.georgiagassavings.com.