Ohio and Illinois · Gas
Should you lock in a gas price before winter?
Written by Judy
· 6 min read
Every fall the letters and calls start. "Lock in your gas price before winter!" "Prices are going up. Act now!"
It's a fair question to ask. Winter is when your gas bill is biggest. But a fixed price isn't always the better deal. Here is how I would think it through, if you heat with gas in Ohio or Illinois.
Why winter makes this question feel urgent
Most of the gas you use all year, you use in the cold months. The Illinois Commerce Commission (ICC) says a home that heats with gas uses "nearly 75 percent of their total natural gas supply from November through March."
So the price you pay in winter matters much more than the price you pay in July. That's why sellers push hardest in the fall.
What you pay if you never picked a supplier
If you never signed up with a gas supplier, you pay your gas company's standard price.
- In Ohio, most gas companies call it the Standard Choice Offer (SCO). At Duke Energy Ohio it's called the Standard Service Offer. The state's Apples to Apples charts call these monthly prices, so they change every month. My guide Why your Ohio gas price changes every month explains how it's set.
- In Illinois, Nicor Gas, Peoples Gas and North Shore Gas pass on their cost of gas through what the ICC calls the Purchased Gas Adjustment. The ICC says "the price you pay per therm of gas consumed can change monthly."
When this price goes up, your bill goes up too.
What "locking in" means
Locking in means signing a contract with a supplier for a fixed price. The ICC puts it this way: a fixed price plan lets you "contract with a gas supplier for natural gas to be billed at the same amount per therm for a specified period of time."
Two things a fixed price does not do:
- It doesn't make your winter bill small. You still use far more gas in January. The price per unit stays put, but the bill still climbs.
- It doesn't promise you'll pay less. If the standard price falls, you keep paying your fixed price until the contract ends.
When locking in can make sense
A fixed price can be a good fit if:
- you would sleep better knowing your price per unit for the next year or two
- the fixed price is close to, or below, what the standard price has been over the past year, not just this month
- there's no monthly fee
- the fee to leave is small or zero
- the contract doesn't roll into a high variable price at the end
When to be careful
The Ohio Consumers' Counsel (OCC) is the state's office for home utility customers. It says it has found that the standard gas price "is frequently the most cost-effective choice to make in the long-run."
So be careful when:
- The price is variable. The ICC says a variable gas price "can change monthly, weekly or daily depending on market conditions." In a cold snap, that can hurt.
- The offer is a fixed bill, not a fixed price. The ICC explains that on a fixed bill plan, "a customer will pay the same amount every month for a set period of time." That includes summer, when you barely use gas. Add up a whole year before you agree.
- There's a low teaser price. Ask what the price is after the first month or two.
- The seller says the deal ends today. A fair offer will still be fair tomorrow.
Six things to check before you sign
- The unit. In Ohio, the state's charts list Enbridge Gas Ohio's standard price per Mcf. Columbia, National Fuel Gas (formerly CenterPoint Energy Ohio) and Duke are listed per Ccf. Illinois uses therms. Make sure you compare the same unit.
- The standard price over a year. One month's price can mislead you. Our pages show how each standard price has moved:
- Fixed or variable? Get it in writing.
- Any monthly fee?
- A fee to leave early? In Illinois, homes can leave a gas supplier with no fee. The ICC says customers "may terminate their agreements with an AGS without incurring early termination fees." (An AGS is an alternative gas supplier.) In Ohio, the fee is set by your contract, so ask.
- What happens when it ends? Ask if it renews on its own, and at what price.
If you sign and change your mind
- Ohio gas: Ohio's rule gives you seven business days after the postmark on your gas company's confirmation letter to cancel. Call your gas company or write to it.
- Illinois gas: the ICC says you can cancel "without penalty within 10 business days after the date on the gas utility notice."
Who can't lock in
In Ohio, people on PIPP Plus, the plan that bases your payment on your income, can't pick a supplier. The PUCO says so on its Apples to Apples pages. Enbridge Gas Ohio also says you need "no past-due balances outside of a payment plan" to join its choice program. See Ohio gas choice: Columbia and Enbridge.
Another way to make winter easier
If what you really want is fewer surprises, ask your gas company about budget billing. The Public Utilities Commission of Ohio (PUCO) says budget billing "spreads out the cost of energy used during high-demand times of the year." It turns a year of use into monthly bills that are more even. You keep the standard price, and winter doesn't land all at once.
Judy Saves is independent. I don't sell gas and no supplier pays me. I'll never call you or knock on your door.
What to do next
- Let me compare it for you. Send a photo of your gas bill to the free bill check. I'll compare your price with your gas company's standard price and the offers the state lists for your area, and tell you what I'd do.
- Illinois? Read Illinois gas suppliers: Nicor and Peoples Gas.
- Still deciding between kinds of prices? See Fixed vs variable rates. The same ideas apply to gas.
Sources
- Illinois Commerce Commission: Natural gas choice: consumer education (opens a new tab)
- Ohio Consumers' Counsel: The Standard Choice Offer (opens a new tab)
- Ohio Administrative Code: Rule 4901:1-29-10, gas enrollment and the right to cancel (opens a new tab)
- PUCO: Budget billing for natural gas and electric service (opens a new tab)
- PUCO, Energy Choice Ohio: Apples to Apples natural gas charts (opens a new tab)
- Enbridge Gas Ohio: Energy Choice (opens a new tab)