Is Long Term Electricity Best in Toledo?
Posted onCan Toledo Save On Electricity?
Our country has hit a five-year high for natural gas storage. Also, NOAA weather predictions suggest that temperatures may be above normal for a third of the country this winter. This could mean we may see cheap electricity rates in the spring. However, we have to keep in mind that we're facing winter weather patterns that can include long cold snaps and heavy snowfall. So consumers may be wondering if now the right time to shop for long term electricity in Toledo.
Will Natural Gas Prices Rise?
The EIA reports that current natural gas storage is above the five year average. And with a third of the US maybe having warmer than normal for the next few months, natural gas used to fuel energy demand may be lower than normal. As a result, natural gas prices could stay low.
However, while forecasters predict a weak La Niña, there's a chance it might not happen at all. ENSO-neutral winters tends to bring colder air to the north. This means a higher likelihood of snow along the Ohio River valley. While it may not be a bitter cold, snow cover means cold temperatures could last longer than normal.
We also have to keep the polar vortex in mind. Forecasts suggest it could stretch and cause a few chilly nights after the holidays. But, there is also a chance for much longer cold snaps to force homes to crank up the heat in the next months. As you can guess, this could mean more energy demand and the potential for higher prices and rates.
Long Term Or Short Term Electricity?
Short term fixed rate plans (6-12 months) are a great option if you plan to move in 2025. Especially if you shop plans from electric suppliers that don't charge early termination fees. On top of that, if the natural gas supply stays high through to the spring, then cheap rates may follow into summer.
For example, the APG&E TrueSimple 6 plan charges 6.56 cents per kilowatt-hour (kWh). If you use 1000 kWh of electricity per month, this means a supply charge of about $65.60 per month. Compare this to the 8.25 cents per kWh that Toledo Edison charges. If you stuck with PTC rates, you would pay a supply charge of $82.50 per month for 1000 kWh of energy.
On the other hand, long term fixed rate plans (14 months or more) are a great option if you want more time with stable and predictable pricing. Locking in a great rate today means avoiding any price spikes that could come around if the natural gas in storage supply shrinks this winter.
For example; shopping around might lead you to the Energy Harbor Safe Harbor Value 14 plan. This plan charges 7.89 cents per kWh, which means paying $78.90 on supply charges per month. Not only is this about $4 cheaper than current Toledo Edison rates, but Energy Harbor offers some of the best customer service according to our readers.
Should Toledo Customers Shop Now?
Right now, signs point to a possibly warmer than average winter. If plenty of natural gas stays in storage it could lead to cheaper priced electricity. Sure, there's a chance for a change in the weather. But right now, shopping for a cheaper Toledo electric rate could save you money for the holidays.
You can always start your shopping right here at https://www.ohenergyratings.com. You can also count on us for the news and tips that could affect your bills.
