Retail gas companies in Atlanta offer several a types of plans distinguished by specific rates and duration of service. Some of these plans can be confusing. To keep it simple, we recommend you consider choosing between either a variable rate plan or a fixed rate plan.

In order to make the best choice between gas marketers, it is necessary to first understand what distinguishes one type of plan from another. Different rates apply to different plans, and both the unit rate and the duration of the plan play a determining role in how much money a household must pay out on an annual basis.

The first type of plan is the variable rate plan. This is a rate established at the beginning of each month by a retail marketer. Gas companies in Atlanta must buy gas at wholesale prices.

Because natural gas comes from so many sources such as oil fields, coal, and underground reservoirs, availability and extraction costs cause wholesale prices to fluctuate. Once the gas is purchased, profits are tacked on to the price and passed on to the customer, who then pays the variable rate for that month.

The benefit of this type of plan is that the customer pays a very low rate if the gas company in Atlanta likewise enjoys several good months of low wholesale pricing. However, if demand begins to pressure supply and costs go up, then the customer will pay more for his or her natural gas.

On a fixed rate plan, there are no surprises like this. The natural gas retailer negotiates a price based upon an unchanging rate that will apply for the duration of a contracted service terms. People on a fixed rate plan are naturally going to pay more at certain times even if the wholesale price for gas goes down.

This is where many people find themselves in a quandary. There is always something of a gambler in each and every one of us. People start to imagine what it might be like to pay a very low rate for 4-6 months at a time simply because the supply of gas is so high that gas companies in Atlanta can buy it for less and pass savings on to their customers.

At times this pays off, much like playing the stock market does.

Then again, one incident in the fossil fuel industry can affect wholesale prices and cause gas prices to fluctuate because that is what the market is doing.

A cold winter can also increase demand for natural gas even beyond what we perceive to be a readily available, abundant supply. We never know when things may change like this, so it is nice to have a safety net if we can find one.

People that want to try a variable rate plan and still have the safety net of a fixed rate plan should choose a natural gas company in Atlanta that allows clients to move from a variable rate plan to a fixed rate plan with no penalty.

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Category: Business
Keywords: retail gas companies, Atlanta gas companies, variable rate plan, fixed rate plan, gas rates