I entered into an agreement with a natural gas provider, Direct Energy Marketing Limited, to buy gas for 5 years, starting 1998 March 1, at a fixed price of 10.4 (Canadian) cents/m^3. The renewal date is 2003 Feb 28.
The monthly natural gas wholesale spot price delivered into TransCanada PipeLines has risen from 12.7 cents/m^3 in 2000 February to just over 21 cents/m^3 in August. My monthly gas bill of $120 includes other charges for transportation, distribution, meter reading, delivery, volume balancing, administration and other services. The current gas supply charge seems to be only 40% of the total amount.
Direct Energy is now asking me to sign (with a $50 dollar bonus to me) a new agreement that guarantees my gas supply price at 21.5 cents/m^3, commencing in September until 2005 October 1. "In the event wholesale natural gas prices decrease in the future, Direct Energy will attempt to lower the price" to me (i.e., below 21.5 cents/m^3).
I'm wondering whether to stay with the current price of 10.4 cents/m^3 for three years more or take the offer for 21.5 cent/m^3 for five years. (I wonder what is going to happen to the other charges.) I also need to think about whether I will continue living in my house for another five years. Choosing between these options is making my life more stressful.