Fixed vs. Variable Rates – Which One Should You Choose?

Georgia natural gas marketers typically offer two types of rate plans: fixed or variable.

A fixed rate plan allows you to rest easy knowing your bill will won’t vary from month to month. It locks in a specific price-per-therm when you commit to a contract, typically between 6 and 24 months long. As natural gas rates fluctuate in the Georgia market, your fixed rate may be higher or lower than the variable rate. The upside is your per-therm rate is guaranteed to remain stable, so you won’t run the risk of an unexpected price increase.

A variable rate plan, on the other hand, is for people who prefer more flexibility. It doesn’t require a contract, so you can cancel any time – without a penalty. With this type of plan, the price-per-therm can fluctuate from month to month with the cost of natural gas. Depending on natural gas prices at the time, this could decrease or increase your bill.