I live in Massachusetts, and NSTAR, my electricity provider, is offering me the choice to lock in a rate of 12.25 cents / kWh for the next three years. The current rate is 12.547 cents / kWh and changes every six months. That rate is 60% higher than the rate 3 years ago, according to a letter from NSTAR encouraging enrollment in the fixed rate plan.
I don't have a forecast for electricity prices and am inclined to lock in the 12.25 rate. I could absorb a big increase in electricity prices if I had to. What have other people done with similar offers? I wonder if on average there is "edge" in letting the rate float or in locking it in.