Energy Procurement – Electric Programs

Index Price Solution:

This product is based on the real time or day-ahead electric market

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  • This product allows customers to monitor market conditions, and remain on a market rate if they believe prices will stay flat or fall; but also gives customers the ability to convert to a fixed price when the time is right
  • Under this program the customer is assuming all the risk associated with both price and usage volatility
  • This option is ideal for customers willing to bear the risk associated with market price volatility, in order to try and drive out additional costs (premiums)
  • However due to varying market based electric prices, it is difficult for customers enrolled in this type of program to accurately forecast energy expenditure budgets

Fixed Price Solution:

Customers pay a single fixed price for 100% of your electricity usage

  • This product allows customers to lock in a set price per KWh for the term of the agreement, manage budgets with certainty, and take advantage of price stability without concern of a volume commitment
  • Best suited for customers looking for budget certainty, and who do not want to risk exposure to market price volatility
  • However, price and budget certainty comes at a cost; suppliers add a “risk premium’ for the volume and price risk they assume
  • There is always timing risk and loss benefit if market prices decline after locking in your price

Block and Index Solution:

This product is a combination of a fixed price and an variable  index product

  • Similar to a NYMEX plus product for natural gas; a load following program allows customers to secure their non-energy costs (ancillaries, capacity, transmission, etc.) and then layer in fixed “commodity” purchases, spreading the price risk over multiple volume-based transactions (blocks), while allowing the rest of the load to remain on market based rates
  • Under a Block and Index product the customer will always have some portion of their load exposed to market index rates
  • Businesses can optimize their program by purchasing blocks based on how they use their power, or in response to market opportunities
  • This option is ideal for customers willing to take an active role in managing their program, unlike a fixed price program, and who also have consistent usage patterns or extended hours of operation

Load Following Solution:

This product is a combination of a fixed price and a variable index product

  • Similar to a NYMEX plus product for natural gas; a load following program allows customers to secure their non-energy costs (ancillaries, capacity, transmission, etc.) and then layer in fixed “commodity” purchases, spreading the price risk over multiple percentage-based transactions / layers
  • This program offers purchasing flexibility, but can also offer budget certainty by allowing the customer to secure in layers up to 100% of the customer’s load
  • Businesses can optimize their program by purchasing load percentages based on how they use their power, or in response to market opportunities
  • This option is ideal for customers willing to take an active role in managing their program, unlike a fixed price program
Interested in receiving a quote or additional information on one of our programs?

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