Electric Supply Options
Looking for business electricity rates in New England? We offer a robust portfolio of Electricity related products. We perform a comprehensive review of current electricity consumption as well as your current contract. We then assist in finding the product that best matches a customer’s risk tolerance and need for budget certainty. Finally, we perform due diligence on all supplier’s contracts and work with customers to determine which best suits their needs. Traditional electricity supply products include fixed price, block and index, fixed with capacity pass through, and index or market based products.
Pursuit Energy Solutions offers several Electricity related products. There are pros and cons to every product and we work closely with clients to find which products fit best with their risk tolerance and need for budget certainty.
100% Load Following Fixed Pricing – This is your most basic electricity product where the client pays the same fixed price per month for every kilowatt hour consumed. Given the changes that we have seen in the market over the past few years, we work closely with clients to compare pricing and contract language between suppliers. Fixed price contracts are traditionally available for 6 to 60 months depending on supplier.
Fixed Price with Capacity Pass Through – Capacity is a charge paid by all customers throughout New England based on their consumption during the peak hour of the year. Given the difficulty in predicting a customer’s usage during 1 hour of the year, this cost can be very difficult for suppliers to accurately predict. When a charge is difficult to predict, suppliers are forced to price in expensive risk premiums to account for the uncertainty. Passing through the Capacity charge gives customers the ability to take control of reducing this cost, while cutting out a supplier’s risk premium that is priced in a contract.
Index/Market Based – For customers with higher risk tolerances that want to ride the market, an Index/Market Based product may be the best option. This product allows customers to purchase electricity in the hourly market with no risk premiums factored in. Traditionally, the success of this product is largely weather dependent given the significant volatility that can occur during the Winter.
Block and Index – This product allows customers access to the hourly electricity markets while locking in a fixed price block for a percentage of their electricity.
Load Following Block and Index – The load following Block and Index product is a great fit for anyone that wants some exposure to the hourly market while locking in a percentage of their electricity purchase with a 100% load following fixed price. Traditionally, customers will locking 50 or 75% of the electricity with the load following fixed price while letting the rest ride in the open market. This gives customers the stability they need for a large portion of their purchase while leaving the rest to float in the hourly market. Most suppliers will allow customers to convert the floating position to load following fixed at any point during the agreement.