The most widely used platform of the available electricity programs in deregulated markets, a Fixed Price program provides the customer the highest certainty of cost and budget management. However, with that being said there are still risks involved in executing a fixed rate contract. It is in essence, a hedged bet and having someone on your side who is familiar with the historical performance of the gas market, someone who consistently tracks and monitors the commodities markets, someone who can help you pick the right time and make sure that all possible pass-through charges are accounted for will truly give you and your company peace of mind. That someone IS Ultimate Energy Advisors.
Variable or floating index pricing ties you to a specific market index rate that fluctuates with ongoing market incidences. This program can float freely (changing constantly during any given day) to day-ahead pricing which is good for a 24-hour period. While variable pricing is typically the most attractive from a pure pricing standpoint, it also carries the most risk. Ultimate Energy can explain how these different variable choices work and provide you with a clear picture of all the advantages and risk associated with this option. We will also provide you with ongoing information so that you can decide if you would like to lock in your contract to a fixed firm rate.
Block & Index pricing is typically used for larger manufacturing concerns that run various shifts and use a high amount of energy. Blocks allow for a reduction in various retail premiums and some incremental savings during off-peak hours of the day. With researching the specific operational tasks, machinery, hours of operation/ shifts and process of your business we can put together an in-depth analysis to see if the block & index pricing is right for you.
Heat Rate is defined as the amount of energy used by an Electrical Generator or Power Plant to generate one (1) kWh of electricity. Heat Rates can provide value during high peak periods of demand where the Power Plants are at 100% capacity and justify a lower lock for the Heat Rate. This program typically locks in every month; however, the customer has the option to lock in for whatever period of time (in months) available under their agreement. Heat Rates also avoid incremental charges typically included in the Fixed Rate Product. While not as predictable as fixed rates, Heat Rates can be advantageous when the gas market is volatile. Ultimate Energy understand how the various supplier’s systems work internally, which is critical for this program; our responsibility is to balance the risk with sound advice in an effort to provide the most value.
While very seldom used, there are a vast number of Hybrid products that are offered with some form or percentage of the above-outlined products that can be contracted. This is for the more experienced customer that wants to “play the market” and believes there will be a downward trend in the next 12-24 months. Our value is to keep this customer in-tune with market conditions as well as any information that may be available that would dramatically affect their price.