ONG - natural gas rates - good or bad idea to lock in the rate

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Shadowrider

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Here's mine.

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Shadowrider

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This will affect everyone, not just those with ONG.

As the electric generation plants move from coal (which is easy to price under long-term contracts) to natural gas (which is subject to wild swings) everyone's power bill will go up.
Not mine. I'm locked in. :D
For a year at least. Looks like it's going to pay off in the next 2 or 3 months.
 

Dumpstick

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I've been saying for years, that moving electric generation to natural gas is going to come back and bite us in the butt.
Coal is relatively easy to produce, easy to ship, and it stores as a giant pile outside. Coal prices are steady over the years, no wild price fluctuations.

Gas generation of electricity on a large scale is, strategically speaking, a horrible idea.
 

dennishoddy

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I've been saying for years, that moving electric generation to natural gas is going to come back and bite us in the butt.
Coal is relatively easy to produce, easy to ship, and it stores as a giant pile outside. Coal prices are steady over the years, no wild price fluctuations.

Gas generation of electricity on a large scale is, strategically speaking, a horrible idea.

For more reasons than you state. The obama war on coal produced some regulations that is going to cost all of us in the long run even with coal plants. President Trump relaxed some of those rules which will help mitigate the price hikes in the country, but in Oklahoma, OGE was proactive when obama's clean air act dictated all coal plants must install scrubbers by a certain time to meet emissions requirements that were insanely low. Some older less efficient plants were forced to shut down.
If not installed and operating by that time huge fines were to take effect, so OGE immediately ordered construction and bought contracts from a scrubber company to start construction. There are only two or three companies that can supply these scrubber systems so getting in line first was a priority to avoid the fines.
Now that President Trump has relaxed the regs, OGE is still contractually obligated to install the scrubbers, and have just about completed with the construction on some.
Okla being a state ran by the Corporation Commission has allowed OGE to recover the cost of the scrubbers by a rate increase.
That's coming.
 

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