When researching natural gas companies, you start to learn new vocabulary — price per centum cubic feet (CCF) vs. MCF, utility vs. natural gas provider, and most importantly, variable vs. fixed rate. This terminology can seem confusing, but understanding it is an important way to save money in your household. No matter the month, saving money is always in season!

How to Get Natural Gas

Natural gas is qualified as a commodity — a raw material that can be bought and sold, with its worth traded on a global scale. This sets the price for natural gas providers like Kratos Gas & Power to buy in bulk and provide to you. Certain states have a deregulated energy market, which allows customers to choose their providers. With our team of experts who can navigate this sometimes volatile market, the reward-to-risk ratio is very high — and the savings get passed directly to you.

Variable Rate vs. Fixed Rate

A fixed rate means your price for natural gas will always be the same — you'll know exactly what to expect when you open your bill in summer or winter. This can be helpful for people with no wiggle room in their budget who need predictable numbers for planning purposes. A variable rate, on the other hand, is based on the price of natural gas in the market. This means that professionals in the field can capitalize on changing prices and pass those savings on to you. Overall, Kratos Gas & Power Michigan has consistently been able to save customers money through its variable rate.

Understanding Why Bill Prices Change

When switching from a fixed to a variable rate, some customers experience frustration when they see prices that seem higher than their standard rate. This can happen from time to time — but overall, a variable rate will save you money. A fixed rate forces companies to guess what prices will be for an entire year, and to protect their profit margin, they keep prices high and consistent. With a variable rate, prices can change day-to-day or even hour-to-hour, and our experts watch these markets closely to make on-the-spot decisions that save you money in the long run. Consider the length of your current contract — are you willing to overpay month after month until it runs out?

Learning the ins and outs of the natural gas market can seem overwhelming at first, but getting the basics down helps you find the right company to trust. Check out Kratos Gas & Power's rates and see how they compare to your current provider.