The plunging price of natural gas is good news for home heating bills this winter, but I don't see anybody offering deals to lock in a price that reflects the decline.
Your best bet is probably to float with BGE's standard monthly rate instead of locking in a price with a competitive supplier.
Baltimore Gas & Electric passes along a "commodity" gas price that varies with the wholesale market. It also charges a distribution fee.
After popping to $1.58 per therm in July, BGE's September commodity price is back down to $1.02. And unless Hurricane Ike messes with Gulf Coast petro-production the way Hurricane Katrina did, prices should fall further as it gets colder.
At least, that's what Wall Street says.
Last week, in the forward market, natural gas for January deliver was selling for about 85 cents per therm. Gas has followed the price of oil downward after both peaked this summer.
But a one-year deal from Washington Gas Energy Services had a commodity price of $1.32 per therm for BGE customers.
Even if you're afraid prices will pop up to $1.58 again or higher, that's a heck of a premium to pay for the insurance.
Despite the decline, the price of gas still hasn't fallen to where it was when last winter began.
BGE's commodity price was between 90 cents and a dollar until April, when it started spiking. People who locked in at $1 per therm - last fall's fixed price from the independents - missed some savings over the winter but were spared the summer highs.
