THREE TYPES OF ENERGY PRODUCTS AVAILABLE TO BUSINESS OWNERS IN TEXAS; other products are available for different markets:
1. [Fixed with All-Inclusive Price]
This option provides the customer with a fixed price for the entire term of the contract. There are no hidden costs or adders to surprise you.
The price includes the cost of energy, capacity, congestion, Daily RMR, renewable portfolio requirements, reserves, regulation, and all other ancillary expenses.
It gives customers the most budget certainty and shields them from market price volatility.
Best for customers with fixed budgets who want to lock in energy costs for an extended period of time or cannot accept price volatility.
Risk profile: Low market price exposure
2. [Fixed Price with Pass-Throughs]
This option fixes the cost of the actual electricity supply, but passes the ancillary costs to the customer directly, called Excluding Congestion.
Ancillary costs are difficult to predict and depending on your location, can include capacity, congestion, Daily RMR, renewable portfolio requirements, reserves, and regulation. The result is control of the volatile supply cost, while you pay the actual ancillary charges.
In many cases, this will be less expensive that the all-inclusive price, since the supplier, not knowing the future cost of the ancillary fees, must price things accordingly to assure that they do not lose money.
Best for customers that want to fix the majority of their energy cost, but are willing to accept some uncertainty on the cost of the ancillary fees and pay only the actual fees.
Risk profile: Low market price exposure.
3. [LMP Index Pricing]
Index Pricing is a variable price option whereby customers pay based on their hourly consumption and the hourly ISO Texas energy market clearing price. Non-energy costs are covered in a fixed price ‘adder’, some of which can be treated on a cost-pass through basis. Customers can convert some or all of the variable priced component to a fixed price at any time.
This is ideal for customers who think that the cost of energy is going to decrease in the future and therefore do not want to be locked-in at a fixed rate. This is also beneficial for businesses that can curtail their energy use during periods of high prices.
Customers choosing this product, however, accept all risk for market price volatility including the possibility of general increases in market prices and the possibility of significant price spikes when system conditions are stressed.
Risk Profile: High market price exposure.
High risk and potential high reward.
WANT TO LEARN ABOUT ENERGY & WHAT PRODUCT IS BEST FOR YOUR BUSINESS AS WELL AS PRICE PROTECT YOUR BUSINESS IN A VOLATILE MARKET?!
CONTACT ME:
André D. Henderson
Sr. Energy Consultant
Eastwood Energy Group
Main: 469-720-0777
Cell: 214-664-5154
Email: andre@eweg.com
1. [Fixed with All-Inclusive Price]
This option provides the customer with a fixed price for the entire term of the contract. There are no hidden costs or adders to surprise you.
The price includes the cost of energy, capacity, congestion, Daily RMR, renewable portfolio requirements, reserves, regulation, and all other ancillary expenses.
It gives customers the most budget certainty and shields them from market price volatility.
Best for customers with fixed budgets who want to lock in energy costs for an extended period of time or cannot accept price volatility.
Risk profile: Low market price exposure
2. [Fixed Price with Pass-Throughs]
This option fixes the cost of the actual electricity supply, but passes the ancillary costs to the customer directly, called Excluding Congestion.
Ancillary costs are difficult to predict and depending on your location, can include capacity, congestion, Daily RMR, renewable portfolio requirements, reserves, and regulation. The result is control of the volatile supply cost, while you pay the actual ancillary charges.
In many cases, this will be less expensive that the all-inclusive price, since the supplier, not knowing the future cost of the ancillary fees, must price things accordingly to assure that they do not lose money.
Best for customers that want to fix the majority of their energy cost, but are willing to accept some uncertainty on the cost of the ancillary fees and pay only the actual fees.
Risk profile: Low market price exposure.
3. [LMP Index Pricing]
Index Pricing is a variable price option whereby customers pay based on their hourly consumption and the hourly ISO Texas energy market clearing price. Non-energy costs are covered in a fixed price ‘adder’, some of which can be treated on a cost-pass through basis. Customers can convert some or all of the variable priced component to a fixed price at any time.
This is ideal for customers who think that the cost of energy is going to decrease in the future and therefore do not want to be locked-in at a fixed rate. This is also beneficial for businesses that can curtail their energy use during periods of high prices.
Customers choosing this product, however, accept all risk for market price volatility including the possibility of general increases in market prices and the possibility of significant price spikes when system conditions are stressed.
Risk Profile: High market price exposure.
High risk and potential high reward.
WANT TO LEARN ABOUT ENERGY & WHAT PRODUCT IS BEST FOR YOUR BUSINESS AS WELL AS PRICE PROTECT YOUR BUSINESS IN A VOLATILE MARKET?!
CONTACT ME:
André D. Henderson
Sr. Energy Consultant
Eastwood Energy Group
Main: 469-720-0777
Cell: 214-664-5154
Email: andre@eweg.com
