MILLERSBURG -- When deciding how to heat homes this year, it's important to weigh the risks and benefits of variable pricing contracts and fixed rate contracts for natural gas.

"If a customer feels they want to budget in their home budget or business budget the current cost of energy, they should do it (lock in with a fixed rate)," said Jeffery Mayer, president and chief executive officer of MXenergy, a supplier of natural gas. "If they want to take a gamble the price will go lower, they should go with a variable."

But for some, those who locked in their prices at a fixed rate, when natural gas was trading at higher levels in mid- to late-2008, are now stuck paying that until the end of their contracts even though natural gas is now at a lower price.

Dave Zimmerman, Smithville, was one of those individuals.

A customer of Dominion East Ohio for almost 50 years, he was able to renegotiate his natural gas bill to a lower rate.

"Three times I called, three times I got reduced rates, which makes me very happy in the end," Zimmerman said.

He's even started to help neighbors with the same supplier achieve a reduced rate, if they are eligible.

Natural gas prices averaged $6.87 per Mcf (1,000 cubic feet) in November, according to the Energy Information Administration, down from an average of $13.06 in June, reflecting the current economic downturn.

The EIA, in its short-term energy outlook released Tuesday, said natural gas prices will decline from an average of $9.13 per Mcf in 2008 to $5.78 -- a 57 percent decline. But 2010 will see a 14.7 percent increase to $6.63.

IGS Vice President Doug Austin said depending on where the market is, consumers can try to renegotiate to a lower fee.

"We want to keep our customers happy. We're not in the business

of making our customers upset," he said.

However, if a consumer wants out of a contract, they might be subject to a fee, ranging from $50 to $150 depending on the supplier, according to the Public Utilities Commission of Ohio.

PUCO's Web site gives consumers comparison of variable and fixed rate contracts with the major distributors in the area, including termination fees.

PUCO said it averaged 56 calls per month from July-Decemeber with questions of service and competition regarding distributor Columbia Gas. Dominion, the other major area distributor, received 88 calls in that same period, according to PUCO spokesman Matt Butler.

"(It) could have been anything from someone upset, or someone wanting to get out of their contract, to someone saying is this a legitimate competitor, what does this contract term mean, or just general questions," he said.

Consumers can get some relief with budget billing, although Mayer warned that has its disadvantages, especially in the summer months when natural gas consumption is typically low.

And conservation -- whether it's reducing the thermostat or putting on a sweater -- always helps.

"If you can adjust, reduce your usage, it's going to have a significant impact on the bill," Columbia Gas spokesman Ray Frank said. "Seventy-five to 80 percent of your monthly bill represents the commodity or the natural gas that you actually consume. So, if you can reduce your usage, you're going to have an impact on the major portion of your gas bill."

Reporter Chris Leonard can be reached at 330-674-1811 or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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