Chris wrote:
frank1492 wrote:
I live in Massachusetts and my natural gas is
supplied by Nstar. I have been given the option to lock in
my gas price for this heating season at $1.2624 per therm.
It is also noted that, as of Nov.6, the gas supply charge
"for the winter" is $1.2424.

This may be not easy to do but I would try to find another supply.
There is something immoral in trying to con you into buying a future
supply at a higher price. A supplier who tries to turn a biz
transaction into a Las Vegas style toss of the dice doesn't deserve
my business.

One of the first principles learned in an MBA program is: "Trade variable
costs for fixed costs at every opportunity." The same applies to profits.

In the case at hand, the gas company may have locked in NG at, say,
$1.00/therm (they've traded a variable costs for fixed cost), and are now
trying to lock in a fixed profit.

In the non-MBA world, this process is called "insurance."