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Got approved for an apartment. It has gas for the hot water heater. I have questions.

This is the first time I've ever had to pay utilities. My fiancé as well. Our rent has always included utilities until now. Except for the hot water heater, the apartment is electric. 

We're in Georgia and I am trying to budget $100 to $130 for electric. And I'm guessing $50 per month for gas. FI and I are both hot natured people. Our winters shouldn't be too bad since we don't like turning on the heat unless absolutely necessary. We will bundle up and use plenty of blankets if we get cold. 

But the natural gas thing is confusing me. I was told to go with the cheapest price per therm. And on the acceptance letter the apartment complex gave us, it lists two providers for natural gas. Scana Energy and Georgia Natural Gas. Their fixed rate plans aren't bad, I think. But Clark Howard's website listed two other providers as an alternative. Infinite Energy and True Natural Gas. Judging from their websites, all four of those companies seem to be available in our area. 

So here are my questions. Is it cheaper ultimately to go with a fixed rate plan? We don't mind signing a contract for 12 months. Or could it be cheaper to go with a variable rate plan?

Also, should we go with a big well-known company like Scana or GNG? Or go with a lesser-known company like the last two companies I mentioned that has lower price per therms?
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Re: Got approved for an apartment. It has gas for the hot water heater. I have questions.

  • We don't have options for gas, but we do for electric and it absolutely pays to shop around. I would compare rates and any fees (and you probably have a minimum bill, so don't worry about turning on the heat when you need it :) shopping around this last time dropped out average bill by $50 for electric, which is insane.

    There may be a reason that the apartment only gave you two options, those maybe the only ones they have contracts with. But if one of the others is cheaper I would absolutely call and ask.
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  • $50 a month should be more than enough to cover the bill if the only thing that is gas is the hot water tank.  In the summer our gas bill is about $25 a month when we aren't using the gas furnace.  You bill will be determined more by the fees and taxes than usage if Georgia is anything like Ohio.
    Formerly AprilH81
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  • als1982als1982 member
    1000 Comments 500 Love Its Third Anniversary Name Dropper
    edited July 2015
    I'm guessing this is largely regional.  Particularly because I've never before heard of having an option between utility providers!  Every where I've ever lived there was only one company that serviced gas and another company that serviced electric.  There was zero choice involved.
    HeartlandHustle | Personal Finance and Betterment Blog  
  • I work in the utility industry and on the whole, it's very rare and awesome if you get a choice in your utility providers. I know everywhere in Texas has the option, but it's really rare outside there. I would still think that even though the other two gas companies service in your area, they likely don't service your complex if they weren't on your apartment's list. There are a lot of issues with ownership of the pipelines and they might just not have contracts with the company that owns the lines that run to your complex. But of course it can't hurt to ask. 

    Do the fixed rate plans have a true-up or do you just lock in a rate for the year? It honestly shouldn't matter too much because natural gas prices are insanely low right now and that doesn't look to be changing through at least spring 2017. That's how far out our gas commission is purchasing natural gas right now. $50 sounds like a great place to start on your budget for the first month or so until you figure out your usage. I'd expect it to end up being way less.

    If you get a choice on your electric provider, that's where you really want to check prices and try and get a deal if there is one to be had.
  • I'm not sure what a true-up is but I think it's just locking in rates for the year. 

    But yeah, I will definitely call the apartment complex and find out if those other alternative providers are even available. 
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  • I think $50 is more than enough to budget per month. We have gas for our dryer, heat and hot water heater and in the summer when we aren't using the heat our gas bill is around $10-15 a month. We do budget billing for it now and the average over all the months is $38.
  • I had a house where the only thing on gas was the hot water heater.  For two people it only ran us about $20-27/month.
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  • We have gas and electric through the same provider (we don't have any other options). Our total bill was $150 (house, family of 4, AC, and with a pool pump running occasionally).
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  • I'm in Georgia too. We use Commerce Energy. After shopping around, they seemed to be the cheapest. We have a fix rate plan, and I'm glad we do.


    I can't figure out what is going on, but our gas bill is $30 in summer and $120 in the winter. The gas is solely for cooking and hot water heater. We do have a lot of family over in the winter (more showers) and cook a lot more in the winter, but I can't figure out why it goes up so much. Just wanted to give you a heads up. BTW: we are a small house and family of 2.

  • I'm in Georgia too. We use Commerce Energy. After shopping around, they seemed to be the cheapest. We have a fix rate plan, and I'm glad we do.


    I can't figure out what is going on, but our gas bill is $30 in summer and $120 in the winter. The gas is solely for cooking and hot water heater. We do have a lot of family over in the winter (more showers) and cook a lot more in the winter, but I can't figure out why it goes up so much. Just wanted to give you a heads up. BTW: we are a small house and family of 2.

    I would double check to make sure you have a fixed rate. I'm betting you don't and so you are paying more in the winter because the demand is higher and so therefore the price per unit is more.
    image
  • I'm in Georgia too. We use Commerce Energy. After shopping around, they seemed to be the cheapest. We have a fix rate plan, and I'm glad we do.


    I can't figure out what is going on, but our gas bill is $30 in summer and $120 in the winter. The gas is solely for cooking and hot water heater. We do have a lot of family over in the winter (more showers) and cook a lot more in the winter, but I can't figure out why it goes up so much. Just wanted to give you a heads up. BTW: we are a small house and family of 2.

    I would double check to make sure you have a fixed rate. I'm betting you don't and so you are paying more in the winter because the demand is higher and so therefore the price per unit is more.


    Yeah I have checked, and we definitely have a fixed rate. The actual usage goes up tremendously during those months. I'm wondering if something is wrong with our hot water heater, but then again we have no other issues with it (water gets hot fast and doesn't ever run out on us.)

  • I'm in Georgia too. We use Commerce Energy. After shopping around, they seemed to be the cheapest. We have a fix rate plan, and I'm glad we do.


    I can't figure out what is going on, but our gas bill is $30 in summer and $120 in the winter. The gas is solely for cooking and hot water heater. We do have a lot of family over in the winter (more showers) and cook a lot more in the winter, but I can't figure out why it goes up so much. Just wanted to give you a heads up. BTW: we are a small house and family of 2.

    I would double check to make sure you have a fixed rate. I'm betting you don't and so you are paying more in the winter because the demand is higher and so therefore the price per unit is more.


    Yeah I have checked, and we definitely have a fixed rate. The actual usage goes up tremendously during those months. I'm wondering if something is wrong with our hot water heater, but then again we have no other issues with it (water gets hot fast and doesn't ever run out on us.)


    Where is your hot water tank located and what is the temperature there? You could be using more gas in the winter just to keep the tank at the correct temperature if the tank is in a cold/uninsulated part of your house. 

    You can also adjust the temperature on the tank so that it doesn't keep the water as hot all the time.
    Formerly AprilH81
    photo composite_14153800476219jpg

  • blondie42107blondie42107 member
    Ancient Membership 1000 Comments 250 Love Its Name Dropper
    edited July 2015
    AprilZ81 said:





    I'm in Georgia too. We use Commerce Energy. After shopping around, they seemed to be the cheapest. We have a fix rate plan, and I'm glad we do.


    I can't figure out what is going on, but our gas bill is $30 in summer and $120 in the winter. The gas is solely for cooking and hot water heater. We do have a lot of family over in the winter (more showers) and cook a lot more in the winter, but I can't figure out why it goes up so much. Just wanted to give you a heads up. BTW: we are a small house and family of 2.

    I would double check to make sure you have a fixed rate. I'm betting you don't and so you are paying more in the winter because the demand is higher and so therefore the price per unit is more.




    Yeah I have checked, and we definitely have a fixed rate. The actual usage goes up tremendously during those months. I'm wondering if something is wrong with our hot water heater, but then again we have no other issues with it (water gets hot fast and doesn't ever run out on us.)





    Where is your hot water tank located and what is the temperature there? You could be using more gas in the winter just to keep the tank at the correct temperature if the tank is in a cold/uninsulated part of your house. 

    You can also adjust the temperature on the tank so that it doesn't keep the water as hot all the time.


    Stuck......

    Maybe try using a hot water heater blanket?
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  • Good ideas! I will try that! It is in a warm part of the house. Sounds like we may have the temp up too high.
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