Electricity
 
Our customers have the flexibility to select from a variety of pricing options for electricity supply. This allows clients to accommodate their budget to the most applicable plan: Fixed, Indexed Price, Heat Rate Index or Blend & Extend. Based on the market, customer’s risk tolerance, usage patterns, size and specific business goals, Enerpower will work with you to design a purchasing strategy that will allow your business to take full advantage of the deregulated electricity markets. Please feel free to contact us for a consultation on how to meet your energy procurement needs.
Fixed Product

Customers who elect this pricing option wish to secure a fixed energy price for the entire term of the contract. This option ensures price stability and budget certainty. The Fixed Product includes features such as energy, basis, capacity, ancillary services, weather, and load shape.

Benefits

  • Price assurance
  • No hidden surprises
  • Total hands-off approach to energy management
  • Hedge against market rate volatility
Indexed Price

This product allows customers to take full advantage of any favorable movements or volatility in the market; however, in contrast to all the other products, it provides the least amount of price/risk protection. While customers do not bear any volume risk, they are susceptible to unexpected price increases by purchasing energy at the prevailing market rate. This product is ideal for customers who have the ability to alter their usage patterns in response to market fluctuations, or those customers who expect commodity prices to decline over the life of the contract.

Benefits

  • Benefit from dips in market prices
  • Avoid risk of locking in at higher prices
  • Manage electricity usage when pricing peaks
  • Eliminate risk premiums associated with fixed price contracts
Heat Rate Index

Heat Rate energy products offer customers an opportunity to link their power price to the price of natural gas, which is the underlying fuel primarily used to generate electricity in most states. Electricity is priced in accordance with the market price of natural gas times a negotiated heat rate.

Rather than opting for a fixed price contract, customers on a Heat Rate energy product pay a price for electricity that varies based on the level of a gas price index. Heat Rate energy products are most popular in the context of a projected declining gas price environment; companies will choose this energy product over other fixed priced energy products so that they can take advantage of future declines in market prices. Companies that have a high level of in-house management expertise often prefer this product. It requires a high tolerance for risk and the ability to absorb wide swings in electricity prices from a financial perspective.

Benefits

  • Benefit from downward trending energy prices
  • Price protection available by hedging natural gas prices on NYMEX
Blend & Extend

If prices change from your current contracted energy rate, the Blend & Extend product will allow you to take a cost average (blend) of the current and future price and extend it over a longer period of time.

Benefits

  • Cost Averaging to Avoid an Immediate Big Hit
  • Even out operational expenses over a longer period of time
  • Lock-in lower prices before they expire
  • Avoid burdensome early termination fees

 

 
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