Market Rates vs. Fixed Rates

Is a Market Index Rate right for you?

Customers often ask us if a market rate per therm is better than a fixed rate per therm.  Since it is impossible to determine which will be the cheapest each year, the best question to ask yourself is, “Do I prefer the certainty of a fixed rate per therm or am I willing to accept market risk if there is an opportunity to save?”

However, at ACE we understand how difficult it can be to compare the two pricing options since one is quoted as an all-inclusive number and the other only shows part of the picture.  To help our customers make an informed decision, we put together a comparison of the two pricing options over the past five years.


 

*Comparison uses average fixed rate per them and average market rate per therm offered during each annual selection period for customers using a typical residential load. Past performance has no bearing on future rates.
 

Still have questions?

Give us a call. We’ll be happy to help.

800-454-4759