would you lock your electric rate for 3 years?

[Penn]

PA we have choice. My 2 year contract is up soon so I am looking around.

The rate before it is piped here is 8.5 cents kwt. So that is the number to compare.


I see

er kWh
6.96¢
green
0%
terms
36 mo. Fixed
Disclosure Statement
TriEagle Energy
New TriEagle customers only. Worry-free t


=========

any thoughts?

 

[pmbug]

Those are both better rates that what I'm paying down here.

 

[Penn]

PM bug- that is the rate to compare.

They charge 2.9 cents and additional surcharges- as well as a hook up fee.

so this is the producer cost only. Not the price to pipe it too me.

 

[pmbug]

To answer your question, 3 years is a long time. Maybe you want/have to move for whatever reason. Maybe the economy goes into full blown deflation and energy costs implode (go down) and you are locked into what becomes high rates. Maybe the opposite happens and you get a great deal. I guess it all depends on how you feel about your crystal ball. I generally go for 1 year contracts.

 

[rblong2us]

we are so used to price increases that a decrease seems to be an impossibility.

The Fed are trying as hard as they can to create inflation and as Bill Bonner often says ' one day they will get it right' but possibly only for a brief moment as we finally get to hyperinflation and the crackup boom that Von Mises predicts -

https://mises.org/library/hyperinflation-money-demand-and-crack-boom

So which is harder to cope with, gently falling prices or hyper inflation ?

Will wages fall ?
Will gov benefits fall ?

If I was going to take out a 20 mortgage loan right now I would be very tempted to lock in a low 'cost of money' rate but can we compare this to locking in an energy rate for a significant period ?

 

[Penn]

I have 2-3 months to decide. At one time my price lock expired and I had a high bill- it was a rip off.

I insist on knowing some sort of rate range.