PriceLockEnergy rates continue to climb during one of the coldest winters on record, meaning it is important for residential electricity customers to lock in their electricity rates to weather the rest of the winter.

The cold weather can only last for so long before many of us grow sick of it. While it may be cause for physical discomfort, it can also be a huge headache when it comes to monthly utility bills. Electricity rates fluctuate with supply and demand factors, which means that when more of these supplies are needed to generate heat and electricity, their prices climb.

This general principle coupled with unseasonably low temperatures (even for the winter) has led to huge spikes in electricity rates, which means that if you have a variable rate electricity plan, you could be paying far more for power than you would like.

Cold driving up prices

Electricity rates are jumping all over the country. The Time Union reported that in the state of New York, electricity prices jumped by more than 50 percent on average in the Capital Region and other places throughout the Empire State in early January, before the polar vortex fully reared its ugly head.

This is due in part because of the need to use natural gas for both heating and energy production. Because natural gas is used in both endeavors, reserves drop faster than one might think, which puts the natural in high demand during the winter. When temperatures become even higher than expected, this creates further problems as these resources are stretched even thinner.

Managing variable rate plans

Power providers offer a variety of options for energy customers to purchase electricity. While some customers opt to go with the fixed rate plan that offers a consistent price for electricity year round, others look to take advantage of the ebbs and flows of the energy market.

Unfortunately, those who have opted for the latter strategy are feeling the brunt of these electricity rate jumps. However, there is a solution to this problem. If you are a residential customer who is suffering from high electricity rates, you can still lock yours in.

The advantage here is that you can make sure that you are immune to these rate hikes, and allow for predictability in the long run. While you may not be able to take advantage of electricity rates when they are exceptionally low, they could pay off in the long run and during times where winter weather is especially cold.

Let us work with you to design a plan