What is a Variable Rate Plan

Compare variable rate Georgia gas plans. How variable rates work, when they make sense, and the risk to watch.

A variable rate plan has no locked price. Your per-therm supply rate can change every month, set by the marketer at its discretion, usually following wholesale gas costs. There is no contract term and normally no early termination fee — you are free to leave whenever you like. That freedom is the whole appeal, and the whole risk.

How variable rates actually behave

Marketers reset variable rates monthly. When wholesale gas is cheap, a variable rate can sit below every fixed offer on the board. When a cold snap drives demand, it can climb sharply within a single billing cycle. Crucially, there is no cap. A marketer is not obliged to keep your variable rate near the market, and rates for existing variable customers are often well above what the same marketer advertises to new ones.

You can see this on the live board. Introductory variable rates frequently appear as the lowest numbers when you compare Georgia natural gas rates, while standard variable rates from the same marketers sit far higher — sometimes four or five times the price of a fixed plan.

Introductory variable rates

Many marketers offer a teaser: an unusually low variable rate for the first month or two, after which it reverts to the standard variable rate. Introductory offers are legitimate and can be genuinely cheap — but only if you diary the end date and re-shop. Treat the introductory rate as a short-term discount, not as the price of the plan.

When a variable plan makes sense

  • You are about to move. No term means no early termination fee. See moving and need natural gas service.
  • You are between fixed plans. A month on variable while you decide beats drifting unenrolled.
  • You actively watch the market. If you will genuinely re-check monthly, you can capture low-price periods.
  • You use very little gas. With an all-electric kitchen and a gas water heater only, the rate matters less than the monthly service charge.

When it does not

If you heat your home with gas and want a predictable winter bill, variable is the wrong instrument. The months when a variable rate spikes are exactly the months you burn the most therms, so the damage compounds. Most Georgia households are better served by a fixed rate plan.

The most common way people end up on one

Very few households deliberately choose a standard variable rate. They arrive on one by default, when a fixed term expires and the contract rolls over automatically. The notice goes out, gets missed, and the first sign of trouble is a January bill that is double what was expected.

If you do not know what plan you are on, find the supply rate on your bill and compare it with current rates. A rate far above the fixed offers on that page is the signature of a rolled-over variable plan. Understand your natural gas bill shows where to look.

Leaving a variable plan

Usually straightforward: no term means no exit fee, and switching Georgia gas suppliers is free and does not interrupt service. Atlanta Gas Light keeps delivering the gas exactly as before; only the name on the supply portion changes. Confirm your specific terms first, since a small number of variable products do carry conditions.

Compare variable and fixed side by side

The rate comparison page lists both, with the plan type and monthly service charge for each, so you can see the real spread. Individual marketers’ current variable products are on their pages: Gas South, SCANA Energy, Georgia Natural Gas and Stream Energy.