Consumers should begin preparing now for the upcoming winter heating season, according the Georgia Public Service Commission. With temperatures dropping and more Georgians turning up the thermostat, natural gas prices are likely to increase. Consumers have several options to consider when faced with the choice between higher heating bills in harsh economic times or a colder home.

Joey Smith, professor of Economics at the University of West Georgia, says locking in at a fixed rate while prices are low is one such option.

“In terms of prices, the futures market is up,” said Smith. “What that indicates is that the expectations are for fuel prices to be higher within the next 30 days.”

Smith believes the onset of winter and the end of the recession could put upward pressure on prices, which would be passed onto consumers who have a variable rate plan.

“If you look at gas prices, they seem to be pretty close to at least a two or a three year low,” said Smith. “If you locked in at today’s relatively low prices, it would be a relatively good thing, especially as we exit a recession; prices typically rise at that point.”

Although prices will likely rise from their current lows, consumers will still spend less than they did last year, according to the Georgia Public Service Commission. The Commission expects natural gas costumers to save an average of $105, or 12 percent, compared to the winter of 2008, and consumers using electricity will save about $20, or 2 percent on average.

Bill Edge, public information officer for the Georgia Public Service Commission, says Georgians could save money by locking in at a 12-month fixed rate or using budget-billing, but that there are risks.

“If people are looking at the fixed rates now, if they lock in now they’re probably going to have lower prices during the winter, but if they hit spring and summer and prices drop, they could be overpaying,” said Edge.

He recommends customers look into shorter six-month fixed-rate plans that some marketers offer, or consider budget-billing, which is popular among seniors and those on fixed incomes.

“With budget-billing, the marketer will look at their bills for the past 12 months, add it up and divide it by 12 and charge a flat payment for the next 12 months,” said Edge.

Budget-billing customers will receive a refund or pay a fee after 12 months, depending on whether they go under or over their allotment, and they can avoid price spikes during cold snaps.

“The historical past is that prices do go up starting right now, because it’s going to get colder this weekend and next week, down in the 30s, so people will turn on their heaters and start using gas,” said Edge.

Other ways consumers can avoid high winter heating costs include insulating and weatherizing their home or seeking help through the Low-Income Home Energy Assistance Program, which is administered through the Georgia Department of Human Resources.

The Georgia Public Service Commission publishes monthly price-comparison charts online for all natural gas marketers’ plans, both fixed and variable.