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Should you switch gas plans before your contract ends?

A lower new rate can still cost more once an early termination fee is included. Start with the months and therms left on your current contract, calculate the costs you would avoid, and subtract the costs of switching. This guide covers marketer comparisons in Atlanta Gas Light’s service territory.

By Georgia Gas Resources · Published and reviewed October 30, 2026

Original worked examples by Georgia Gas Resources. Policy and delivery explanations use the primary sources linked below. Examples are illustrative; verify your own contract and enrollment terms.

Collect the terms before doing the math

Find your current rate, monthly marketer fee, contract end date, cancellation fee and renewal notice. Ask when the replacement plan can start. A quote available today may not be available on your desired start date, and a requested date is not the same as a confirmed switch.

Use expected therms over the remaining period, preferably informed by the same months in your own usage history. Adjust for household changes, and consider a lower-usage scenario as well. Do not compare a full year of new-plan savings against only a few months left on the old contract.

Worked example: a cheaper rate that does not recover the fee

Assume four months remain. Your current plan is $0.90 per therm plus $8 a month. A hypothetical replacement is $0.65 per therm plus $10 a month. The current contract has a $100 cancellation fee. Assume 20, 40, 100 and 80 therms in those four months: 240 therms altogether.

For this example, delivery costs are assumed unchanged between marketers over the same period. Taxes, new enrollment costs, credits and other differences are excluded and must be checked separately. The numbers are invented, not current offers.

Illustrative four-month cost comparison before delivery, taxes and other costs
ItemStay on current planSwitch now
Supply at 240 therms$216.00$156.00
Four monthly service fees$32.00$40.00
Cancellation fee$0.00$100.00
Compared cost$248.00$296.00

Calculate net savings, not just supply savings

The replacement saves $60 in gas supply, but adds $8 in service fees and a $100 exit fee. Net savings are $60 − $8 − $100 = −$48. Switching costs $48 more in this scenario, before any other differences. Waiting until the cancellation fee no longer applies could change the decision, but the future replacement rate is unknown.

A reusable formula is: remaining therms × (current rate − new rate), plus remaining months × (current monthly fee − new monthly fee), minus the cancellation fee and other switching costs, plus confirmed qualifying credits. Positive results favor switching for the costs included; negative results favor staying over that period.

How much remaining usage would justify switching?

Here the lower rate saves $0.25 per therm. The extra fees and exit charge total $108 over four months. Break-even remaining usage is $108 ÷ $0.25 = 432 therms. At 432 therms, the compared costs match. At 600 therms, net savings would be $150 − $8 − $100 = $42, before other costs.

That threshold depends on the exact four-month window, fixed rates and fees assumed here. If the old or new rate is variable, calculate separate monthly scenarios. A small estimated advantage can disappear with lower usage, an enrollment fee or a missed discount. Compare contract length and your willingness to accept new commitments too.

Confirm the switch and check the first bill

The PSC advises checking marketer switching procedures, fees and completion timing. Ask who coordinates the change, whether your requested date avoids the old termination fee, and what happens if the switch is delayed. Obtain written confirmation; do not assume an advertised fee credit covers your situation.

Changing marketers for an occupied home is different from stopping service for a move. Ask both marketers about the correct process before canceling anything yourself. Keep the old contract, final statement, replacement agreement and start-date confirmation. Check for unexpected overlap, the new supply rate, service fee and any credit on the next bills.

Once the comparison is complete, save a reminder for the new contract’s renewal decision. Use Georgia Gas Resources’ current plan list as a shortlist and confirm the final terms directly before placing an enrollment order.

  • Verify the exact fee applicable on the planned switch date.
  • Compare the same remaining period with realistic usage.
  • Check additional fees and conditions on any reimbursement.
  • Confirm the start date and coordination process in writing.
  • Review the final old bill and first new bill.

Put your comparison into practice

Check current published plans, then ask the marketer to confirm the offer for your address, usage and eligibility.

Compare current gas plans

Sources and editorial method

Georgia PSC: selecting a natural gas marketerGeorgia PSC: pricing charts and comparison definitionsAtlanta Gas Light: rates, delivery charges and DDDC

Sources checked October 30, 2026. Georgia Gas Resources’ calculations use the hypothetical figures stated in each example, not a household bill or current offer. Guide dates do not indicate that a marketer’s rates were updated.

How Georgia Gas Resources compares plans and handles referral linksReport an error or suggest a correction