Index Power Price Alert – January 2018

Locational Market Price Chart - January 2018

By Michael DeCaluwe

January 10, 2018 – For those that have their electricity service priced under an index agreement, you have seen record low costs throughout 2017 due to our unseasonably mild weather over this past year.

However, the brutal cold we saw at the end of 2017 sent index prices soaring to some of their highest levels in almost 3 years. Those hit particularly hard were clients in New England, New York, Pennsylvania and Maryland.

Long-term, index rates have still been far lower than fixed rates. Clients that can take the risk can often benefit from this product, but the above illustrates “Murphy’s Law” with respect to how high index rates can get during periods of volatile weather.

Any questions? Contact one of our Strategic Energy Advisors at 630-225-4550 to discuss your company’s power strategy.

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