|
Patrick - my thinking was similar to yours. Another reason to lock-in now is that my usage is much higher in the summer (2500 kwh vs. 750 in the winter) so if NG prices stay high for the next few months, I can easily save some money in the short term - if spot prices decrease this winter and I am paying a few cents more per kwh than the market, I don't have that much downside because my usage is less.
ERD - I imagine that power companies are hedging their exposure based on the number of customers that sign up for fixed contracts. So I am not betting against them as much as giving them a guaranteed margin today in exchange for limiting my risk in the future. And I am working on conservation, see my other post on the radiant barrier which I'm working on purchasing and installing.
|