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The Water Cooler
General Discussion
OGE price drop
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<blockquote data-quote="SlugSlinger" data-source="post: 4143928" data-attributes="member: 7248"><p>The real issue for the price increase is the poor planning by the utilities. They did not hedge the gas prices against a winter storm and had to pay spot market prices that are based on supply and demand. They higher the demand on the spot market, the higher the price.</p><p></p><p>ONG offers a locked in rate each year. They take that information and hedge against an unforeseen event. If you don’t participate in the locked price, you are assuming the risk of an unforeseen event.</p></blockquote><p></p>
[QUOTE="SlugSlinger, post: 4143928, member: 7248"] The real issue for the price increase is the poor planning by the utilities. They did not hedge the gas prices against a winter storm and had to pay spot market prices that are based on supply and demand. They higher the demand on the spot market, the higher the price. ONG offers a locked in rate each year. They take that information and hedge against an unforeseen event. If you don’t participate in the locked price, you are assuming the risk of an unforeseen event. [/QUOTE]
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