Why the lowest introductory gas rate may cost more long term

The introductory price is only one part of the cost

Compare the therm price, the number of months it applies, recurring service fees, credits you qualify for and cancellation charges. A lower therm price with a higher monthly fee can cost more at modest usage. A short variable introduction may cover only one or two bills; it is not a year-long fixed price.

For example, a 3¢ saving per therm saves about $19.23 per year at 641 therms. A $3 higher monthly fee adds $36 per year. That fee can outweigh the lower therm price before renewal is considered.

A lower initial rate can have a higher five-year cost

Here is a residential example at 641 therms per year, using two offers in our October 5 saved snapshot. Both initially charge a $6.95 monthly service fee.

Constellation starts 3¢ per therm lower. SCANA costs about $1.60 more per average month initially, but its lower published standard price produces a five-year scenario about $269.30 lower.

This is a comparison of two eligible saved offers, not a guarantee or a ranking of every plan each marketer offers. Constellation's regional price is a PSC-listed new-customer offer, not a separately verified website promotion. Its eligibility depends on the property's delivery group. SCANA requires SAVE and applicable customer eligibility; the saved offer lists October 5 as its expiration date. Verify current terms before enrolling.

What the published-rate comparison tells you

We apply the initial price for its 12- or 18-month term, then use today's published equivalent for the remaining months through year five. For SCANA regular Fixed, we use the standard same-term price. For Constellation's new-customer regional offer, we use its statewide standard same-term plan.

That Constellation treatment is a modeling assumption, not a confirmed future renewal entitlement. Published standard prices show a useful current reference after signup discounts, but do not establish what a marketer will charge years from now. The calculation holds usage and those published prices constant and excludes AGL delivery, taxes, one-time charges and optional discounts.

Changing your usage, eligible offers or contract lengths may change the best option. Our calculator selects each marketer's displayed offer by lowest initial monthly cost among the selected terms, then lets you compare the resulting five-year costs.

When prioritizing longer-term cost makes sense

The five-year scenario is especially useful if you expect to stay with one marketer and want to understand the price beyond signup. Compare both the initial and published standard rate, rather than assuming that the introductory discount repeats.

If you regularly shop again at the end of each contract, a low introductory offer can still be a good choice. Compare the total cost over that contract, verify credits and cancellation terms, and set a reminder before renewal. Our five-year stay-with-one-marketer model does not simulate switching between future promotions.

A fixed rate locks the contracted therm price for its term, not your total bill or a five-year renewal price. Read the renewal notice and compare actual offers again before committing.

Check these details before choosing

• How long does the initial rate apply, and is it fixed or variable?
• What monthly fees apply during the offer and afterward?
• What is the marketer's current published standard price for the comparable plan?
• What happens if you take no action at renewal?
• Will credits, cancellation charges or eligibility change your cost?

The Georgia PSC's shopping guidance recommends understanding all charges and plan terms, including cancellation fees.

Sources: PSC fixed-rate chart · SCANA SAVE offer · Our calculation methodology.