This issue never came up when I was living in the desert (had natural gas, but got it from the city.) I got an offer from some company named IGS Energy to hedge natural gas at 89 cents a therm. I get my natural gas delivery from National Grid (NiagraMohwawk) currently with the last cost being, I think, 92 cents plus another 6(!) decimal places. While energy hedging sounds like it could be a good idea, I’m worried both that the economy will drive the cost of natural gas down even further (I believe it tracks reasonably well with oil) though at under $1 I’m not sure the difference is enough to worry about but also I’m worried about the details of the contract. So that doesn’t worry me too much, but what worries me more is that the contract locks me in to a contract until June 2010 with a $100 early termination fee and I don’t know where I’ll be living next year (current lease ends December 2009 and I don’t know if moving might be on the table) and if the contract would move with me. I don’t see that I have to pay anything up front.
So, does anyone do this and does anyone actually have experience with IGS Energy?