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TMT: Best Time to Purchase Natural Gas

Video Transcript

Hi! My name is Mike, and I’m a Senior Energy Advisor here at Nania Energy. One of the most common questions I get asked by clients is “When is the best time of the year to purchase natural gas?”

It’s a great question, because natural gas is a traded commodity — meaning prices go up and down with supply and demand. Should you purchase in the summer when there’s less heating demand? Or maybe in the spring and fall when the weather is a little more temperate?

In this week’s Two-Minute Tuesday, we’re going to answer just that.

How Buying Natural Gas Has Changed

Twenty years ago, purchasing natural gas seasonally made sense. You could purchase in the spring, summer, or fall when there’s less gas demand and generally make out pretty well.

But in the past few years, something has changed with natural gas. It has become the #1 source of electricity generation in the United States — meaning there is now year-round demand for it.

The chart below from the Energy Information Administration shows that in 1998, natural gas accounted for 15% of domestic electricity generation. In 2018, you can see that it accounts for 35% and is easily the United States’ number one source of electricity generation.

Sources of Electricity Generation

Source: U.S. Energy Information Administration, Monthly Energy Review, Table 7.2a, March 2019

So, when you’re in the dead heat of summer and you have your AC blasting, guess what’s cooling you down?

That’s right — electricity generated primarily by natural gas.

How does this affect your gas purchase?

So back to our original question: When is the best time of year to purchase natural gas?

Because of the growth in use of natural gas, there’s not a “best” time to purchase it. Supply and demand are battling each other, and they’re doing it every season of the year.

But that doesn’t mean that you can’t create a strategy that takes advantage of the market. Some options that you can include in your strategy are:

  • Planning hedging opportunities throughout the year, or
  • Setting a price target for your upcoming agreement.

What I would NOT recommend is waiting 2-3 months before your agreement expires to take action. Who knows what the market will be doing at that time?

Make sure your current broker is following a purchasing plan that matches your goals and makes sense. If you don’t have a plan or would like help developing one, that’s what we do.

Thanks for watching! If you found this video helpful, please like, comment, or share below.

 

Want more tips on energy purchasing? Check out these articles:

Green Energy 101: How to Go Green in 2020

By Michael Zaura

January 13, 2020 — The end of a decade and the start of the next is the perfect time to reflect on the past and plan for the future.

Green (renewable) energy has already made a significant impact on the energy industry, and it’s going to play a huge part going forward. The U.S. Energy Information Administration (EIA) predicts that renewable sources will generate almost half of the world’s electricity by 2050.

Green Energy 101

Source: U.S. Energy Information Administration, International Energy Outlook 2019

Have you been thinking about green energy for your facility? In this post, we’ll:

  • cover the basics of green energy,
  • answer some FAQs, and
  • explore a couple ways you can incorporate renewables into your energy strategy.

What are sources of renewable energy?

Renewable energy is energy that is not generated from fossil fuels (coal, oil, and natural gas). Sources include:

  • Sun (solar energy)
  • Wind
  • Underground heat (geothermal energy)
  • Water (hydroelectric power)
  • Biomass
  • Hydrogen and fuel cells

These sources are naturally replenished over time, which is why they’re considered renewable.

Is nuclear energy green?

Yes…and no.

Nuclear energy produces far fewer greenhouse gas emissions during electricity generation compared to coal or natural gas. It’s also more reliable in generation from an efficiency standpoint. Some suppliers even market nuclear as a “carbon-free” product. In those regards, it could be considered “green.”

However, nuclear energy contains uranium, which is not a naturally-occurring resource. Also, the radioactive waste created from the generation process is definitely not environmentally friendly.

Fore more on nuclear, check out these articles:

How to Buy Green Energy

When you’re looking to “go green,” you have two primary courses of action:

  1. Purchasing RECs
  2. Owning a renewable asset

What is a REC?

A Renewable Energy Credit (REC, or SREC for solar) is proof that 1 megawatt-hour of electricity has been generated by a renewable resource. Buying RECs ensures that renewable electricity is being generated on your behalf and delivered to the power grid.

Many clients choose this route as a more affordable alternative to owning the asset outright.

Owning a Renewable Asset

Examples of renewable assets include:

  • A solar array on a rooftop or plot of land
  • A wind turbine
  • A geothermal system in the floor of a building

Investing in a green asset for your facility requires the right amount of space, capital, and the right situation.

If you’re interested in owning a renewable asset, a Power Purchase Agreement (PPA) is one of your financing options. A PPA is a contract between a developer and an electricity consumer. These agreements typically last between 10 and 25 years.

“How do I know that the energy I’m getting to my facility is really green?”

I get this question from clients all the time. And the short answer is: unless you own the asset tied to your facility, you won’t know.

The grid contains both green energy and “brown” (non-renewable) energy. If you purchase RECs, you do ensure that green energy gets to the grid. But you won’t know for sure what part of the mix coming from the grid to your facility is truly green.

Is there green gas?

While most green energy talk revolves around power generation, green or renewable natural gas (RNG) does exist.

Green gas comes from biodegradable materials (think of a landfill) that emits a usable biogas. This biogas is purified and turned into biomethane. Biomethane can then be injected into gas pipelines for end user consumption.

One reason RNG isn’t as prevalent as renewable electricity is because most of the U.S. currently lacks the infrastructure to clean and transport the gas. Once more pipelines and refineries are developed, we will see an increased use of RNG.

Green energy can be in your future.

Is going green part of your plan in the next 30 years?

If renewable sources are going to fuel half of our electricity, more facilities will need to invest in renewable assets. Some countries, corporations, and individuals have already set sustainability goals. As new technologies surrounding green energy continue to evolve, these goals will be easier to achieve.

Cheers to a greener future!

How to Navigate Energy Phone Calls

By Matt Souvannasing

Energy professionals (brokers and advisors) primarily use phone calls to contact current and prospective clients. Knowing what to expect from a call will help you decide whether to take the call and determine if the call is from a reputable energy company.

Who is calling you?

When an energy professional calls you, they should state who they are and the company they work for within the first few seconds. If you don’t recognize the company name, you can do a quick online search for more information about the company.

Or, feel free to ask the caller any clarifying questions. Having peace of mind about who you’re speaking with will give you the confidence to continue the call.

Why are they calling you?

Energy brokers and advisors typically call you to:

  • Make an initial connection and explain their company’s services
  • Introduce a market opportunity that you could take advantage of
  • Set up a time to meet with you to discuss energy
  • Talk about renewing your current contract
  • Bring a billing or payment issue to your attention.

What information will they ask for?

Brokers and advisors need specific information from you so they can give you pricing options.

Typically, they’ll ask you for:

  • Current bill copies (1-3 months is standard, but some suppliers may require 12 months)
  • A copy of your current energy agreement
  • Your signature on an LOA or LOE

The energy professional should clearly explain why they need each of these documents and should never be pushy.

Why do they need those documents?

Each piece of information serves its own purpose in the pricing process.

  • Current bill copies: Suppliers use these to verify that you have an active account with your local utility and gain monthly usage and demand information.
  • Copy of your current energy agreement: Contractual obligations with your current supplier can only be verified by looking at a copy of your current agreement — specifically the “Service Term” section and any roll-over provisions. The broker or advisor will use this information to guide their pricing requests and ensure you don’t have early termination fees.
  • LOA/LOE: Most third-party suppliers require a broker or advisor to submit an LOA or LOE before they will release pricing. This document is proof that you’re allowing the broker or advisor to receive account information on your behalf.

Do your research.

Take some time to research before deciding if the person you’re speaking with is the right energy partner for you. A reputable broker will be more than happy to set up a follow-up call with you or an in-person meeting later.

You should not feel pressured or tricked into providing your information. If you do feel this way during the call, you should not continue communicating with the caller — it may be a scam.

Please feel free to contact us if you have any questions about working with an energy advisor or broker.

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TMT: Choosing an Energy Contract Term Length

Video Transcript

Clients are always asking me: “How long should I lock in a rate?” Is it better to lock shorter term or longer term?

In this week’s Two-Minute Tuesday, we’ll be discussing factors to take into consideration when choosing a term for your energy contract.

Common Energy Contract Term Lengths

When it comes to terms for your energy agreement, 12, 24, and 36 months are the most common options.

But they definitely aren’t the only options.

Most suppliers will readily go out 48-60 months on a fixed contract, and the top suppliers — with special approval — will go out for as far as 7-10 years for clients with really good credit.

Factors in Choosing an Energy Contract Term Length

So with all those options in mind, the major factors to take into consideration are:

  • Market Conditions
  • Internal Policies
  • Market Timing

1) Market Conditions

When we say “market conditions,” we aren’t just talking about pricing today. Market volatility and macroeconomics also play key roles over the long term.

When market prices are high, you don’t want to guarantee that you have a very high rate for a long time. That’s a good time to look shorter term.

When prices are relatively low — and notably lower than what you’ve been paying in the past — those are times that you’d want to look out longer term.

What constitutes longer term and shorter term for you may vary based on your organization’s internal policies, which is the next factor to look at.

2) Internal Policies

Some examples of how internal policies can affect the decision of how far out to lock are:

  • Specific term limits, i.e. you can’t enter into an agreement beyond a 36-month term.
  • How far out you can commit
  • Individual authorization limitations, where it wouldn’t be practical to go ahead and get additional authorization from a higher-up in the organization beyond a certain term length.

3) Market Timing

It’s important to allow ample time to monitor the market. Clients who see the best results over the longer term generally stay 9-12 months ahead of their contract termination date when making these decisions.

What does that mean for the length of the agreement? Well, any contract that expires within 12 months really doesn’t allow much time for you to go out and monitor the market and get the best results.

 

In short, when deciding how long you should lock in, take all of these factors into consideration to make the best choice for your organization. Thanks for watching this episode of Two-Minute Tuesday. If you found this helpful, please share or comment below!

 

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TMT: How are energy brokers paid?

December 17, 2019

Video Transcript

The topic for today is: How do energy brokers, agents, or consultants get paid?

It’s one of the most frequently asked questions that we get. So today, I want to open up a discussion so that you understand better how the process works.

There are 2 ways that we get paid. But first, let me explain that I’ve been doing this business for over 27 years and I’ve been involved in literally thousands of transactions. And I’ve worked with many other agents and brokers in this industry. So what I’m about to tell you is established as common practice.

How Energy Brokers Are Paid

1) Directly from the Supplier

Suppliers send us a commission check every month. The amount we get paid is a function of the margin rate that was established on the deal and the volume that was used in the previous month, whether that be gas or electric.

This method accounts for 98% of all the transactions in this marketplace.

2) Payment from the Client

The other way that accounts for a very small percentage is when a client pays the broker directly some kind of negotiated fee.

It is implied that when a client works directly with an energy broker that the broker is also not getting paid by the supplier. It’s a very bad practice in our industry, though, where often times the broker gets paid by the customer and then also gets paid by the supplier.  That is NOT best practice.

How Margin is Split Between Broker and Supplier

So let’s look at what’s included in the broker mark-up. Suppliers have minimums that they need to receive on any kind of transaction.

So how are minimums established?

First, suppliers are going to look at how big the load is. The bigger the load, the lower the margin that suppliers are willing to accept. The price that they’re going to put on it is so that they can receive a reasonable return and also cover their fixed costs with a transaction.

In almost every instance, a best practice in our industry is that the margin is split 50/50 between the broker and the supplier. So, if at the end of the day the mark-up on an electric deal is $.002 per kWh, $.001/kWh goes to the broker and $.001/kWh goes to the supplier.

What goes into a Broker’s Margin?

Let’s look at what goes into what the broker establishes as the margin.

The broker has to recover their sales and fixed costs. On the fixed cost side, there are several things we have to consider that could add to our cost for the transaction:

  • The complexity and size of the transaction. If it’s a larger load, the broker is less inclined to put a bigger margin on it.
  • Multiple locations
  • Auction was being performed
  • Custom contract negotiation: this requires more of our time to finish the transaction.
  • Competition at your location: Let’s say you have another broker shopping against us. Part of your evaluation of who you’re going to use is both their price but also their services. And those services are sometimes difficult to put a value on. But it’s something that we’re sensitive to when we’re pricing a deal.
  • Cross-Sell Opportunities: If we’re selling you electricity in this transaction but you’re also a big gas user or you’re considering demand response or efficiency projects, this weighs into our margin considerations.
  • Growing/Shrinking Load: For instance, let’s say you’re currently using 1 million kWh this year but you’re about to add some new production lines that will increase your usage to 4 million kWh. What we’re going to do is price it more competitively in anticipation of that bigger load.

Will an energy broker tell you their margin?

An energy broker typically does not disclose their margin in writing. It very much mirrors how the insurance business works.

If you would like it in writing, you are more than welcome to ask for it and, if necessary, a broker will put it in writing. The problem is, what they put in writing might not necessarily be what they are actually receiving. So this boils down to a matter of trust. You have to have a high degree of confidence and trust in the agent or broker that you’re using to ensure that you’re getting a fair deal.

Have more questions about energy brokers?

Thanks for watching! If you found this helpful, please like or share this with others. And, as always, if you have any questions about how a broker gets paid, feel free to reach out to us directly.

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FAQ: What is Utility Consolidated Billing?

By Matt Souvannasing

December 12, 2019

Does your utility bill have a supplier name listed next to the energy charge?

Supplier on Utility Bill

Supplier on Utility Bill

If so, you likely fall into one of 3 scenarios:

  • You knowingly signed a contract with a third-party supplier and chose Utility Consolidated Billing (UCB) as your billing format (or it’s the supplier’s default format).
  • Your contract term expired, and you did not sign another contract. Based on the renewal language in your initial contract, you are still being serviced by the supplier on a month-to-month basis with the UCB billing format.
  • You may be part of a municipal aggregation program, in which your city or county has negotiated a rate with the supplier for your business (automatically set up on UCB).
    • This situation is not as likely. Depending on the rules of your local aggregation program, you might not be contractually obligated to the program and can secure your own supply option.

What is UCB?

Utility Consolidated Billing (UCB) is a billing format in which all energy charges — supply, market, delivery/utility, and taxes — are included on one bill from your local utility.

The supply charge is one of the line items listed on your invoice. When you pay your bill, the utility remits payment to the supplier for the supply (energy) portion of your bill.

UCB is common in states that don’t offer single supplier billing.

I didn’t sign a contract, and I’m not in an aggregation. What’s going on?

It’s possible that you’ve been slammed. Slamming is when someone else signed or authorized the execution of a supply agreement on your behalf without your knowledge or approval.

Slamming is more common in the residential or small commercial space. But it’s a good idea to review your bill regularly to confirm your current supply partner and contracted rate are correctly stated on your utility bill.

Who should I contact with questions?

If you’re not sure why a supplier is listed on your utility bill, one of the quickest ways to get answers is to reach out to that supplier and ask for a copy of your current contract.

If you have further questions, feel free to contact us.

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About the Author

Matt is an Energy Advisor specializing in retail and energy aggregation programs. He is passionate about helping first-time energy buyers understand the deregulated market and find the best solutions for their business. In his free time, Matt enjoys cooking and photography.

Matt can be reached at (630) 225-4557 or msouvannasing@naniaenergy.com.

FAQ: What are my energy bill format choices?

By AJ Brockman

When you sign a contract with a third-party supplier, your energy bill can come in one of three formats:

  1. Single Supplier Bill
  2. Utility Consolidated Bill
  3. Dual Bill

Let’s see what each of these billing formats looks like.

Single Supplier Bill

The name of this billing type varies by supplier, but the basic format is the same for all. Under this billing option, all your charges — supply, market, delivery (utility), and taxes — appear on one bill from your supplier.

Energy Bill Format: Single Supplier

Single Supplier Bill

To pay this bill, send your payment to the supplier. The supplier will then remit the utility portion to your local utility.

Utility Consolidated Bill

With this billing type, all charges — supply, market, delivery (utility), and taxes — are on one bill issued by your local utility.

Energy Bill Format: Utility Consolidated

Utility Consolidated Bill

Make your payment directly to the utility, and the utility will pay your supplier its share.

Dual Bill

This billing option is exactly what it sounds like. Each month, you’ll receive two invoices — one from your supplier with your supply charges, and one from your local utility with its charges. Market charges will appear on either the supplier’s bill or the utility’s bill.

 

Energy Bill Format: Dual Bill

Dual Bill – Supplier Portion

Energy Bill Format: Dual Bill

Dual Bill – Utility Portion

 

With dual billing, make sure you pay both invoices each month.

Can I choose my energy bill format?

Sometimes. Your ability to choose your billing type depends on:

  • The state you live in
  • The commodity (electric or gas)
  • The supplier

Some suppliers give you the option to choose your billing type for both commodities. Others have a set billing option that you can’t change. If you prefer one billing type over the others, make sure your chosen supplier can provide it.

Is one billing option better than the others?

The short answer is no. There are no premiums associated with any of these 3 billing types.

Some clients prefer one bill from either the supplier or their local utility that includes all charges because they only have to keep track of one invoice each month. However, we recommend choosing the billing type you’re most comfortable with.

A quick note: When switching suppliers, it’s a good idea to keep your current billing type. This helps avoid billing delays and other billing issues.

Have more energy bill questions?

Check out this video about your energy bill components. And feel free to comment below or reach out to us with your questions.

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Two-Minute Tuesday: On-Bill Financing

November 26, 2019

Video Transcript

So you’ve decided to do an energy efficiency project. Now, how are you going to pay for it? In today’s Two-Minute Tuesday, we’re going to review on-bill financing as a way to pay for your energy efficiency project.

What is On-Bill Financing?

Under on-bill financing, your energy supplier will pay for the cost of your efficiency project. You will sign a supply agreement with that supplier for some defined period that will include a monthly fee that the supplier will use to help pay back the cost of the efficiency project.

Here’s an example of how this works:

Company A is currently spending $50,000 per month on electricity, using 1,000 MWh at $50/MWh.

Current State

Company A negotiates a 3-year agreement to fund a lighting efficiency project. Once the efficiency project is completed, the energy usage reduces 10% to 900 MWh. This customer pays a monthly financing fee of $5,000 on their invoice. As you can see, their monthly spend on electricity stays at $50,000 during the term of the agreement.

During Project

Once the 3 years are up, the financing fee is eliminated from their bill, and the customer’s monthly electricity spend is reduced by 10%.

After Project

Benefits

So what are the advantages of on-bill financing? Well, most on-bill financing programs are considered “off balance sheet,” so getting internal company approval for these types of programs is often easier than for traditional funding.

Secondly, many clients declare the monthly fee on their bill as an operating expense since it is included on your monthly energy invoice. So there may be some tax advantages* to capitalize on from this financing.

Consider on-bill financing for your energy efficiency project.

In short, supplier on-bill financing for efficiency projects is another way to pay for your energy efficiency project. There are many advantages of this option that aren’t provided by other forms of funding.

Thank you for watching our video, and be sure to catch December’s Ask An Advisor video in which we showcase a client who used on-bill financing to fund their lighting efficiency project.

**DISCLAIMER**

Nania Energy Advisors is not a licensed tax professional, and this article does not constitute tax advice. Tax exemption benefits are unique to each business. Any action you take to manage your exemption status after reading this should be verified with a licensed tax professional before implementation. Nania Energy Advisors assumes no liability.

 

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Pros & Cons of a Partial Fixed Product

By Calvin Cornish, CEM

November 25, 2019 – If you’ve seen our recent Risk Management video, you know that a Fixed All-In product isn’t your only purchasing option for your electricity.

The chart below shows you the 5 components that make up your electricity supply charges.

Components of Electric Cost

Anytime you lock less than all these components, you have chosen a Partial Fixed (also called Pass-Through) product. Any component not included in your fixed rate is “passed through” to you at its actual cost each month.

Clients typically pass through capacity and transmission (yellow and light blue above) because they’re the next largest costs behind energy and are not directly related to your monthly usage.

Why would you choose a Pass-Through Product?

The pros and cons of a partial fixed product mostly center around risk and its effect on price.

Pass-Through Product: PROS

  1. Reduced risk. Including capacity and transmission as part of your fixed rate converts those flat demand charges ($/day) into usage-based charges ($/kWh). As a result, you could end up paying higher costs for your demand charges.
  2. Avoid risk premiums. If you fix your cap and trans components, suppliers include a risk premium as part of your rate to protect themselves from underpayment. These risk premiums increase your monthly cost.
  3. Take advantage of improved efficiency. If you undergo an efficiency project that improves your load profile, you could lower your capacity and transmission charges. You won’t see that decrease if you’ve fixed them as part of your rate.

Pass-Through Product: CONS

  1. Uncertainty around PLC tags. A large factor in your demand charges is your facility’s usage during the grid’s peak usage periods. There is always a risk that a couple of bad days can result in higher numbers.
  2. Demand charges could increase. By not including capacity and transmission in your rate, you run the risk of these costs actually increasing if your efficiency declines. The type of facility matters — residential and commercial buildings are less likely to see decreased efficiency than industrial manufacturers.
  3. Billing complexity. Passing through components adds line items to your bill. A single cost per kWh will always be a cleaner billing option.

Who’s a good fit for a pass-through product?

If you identify with any of the qualifiers below, you could benefit from a pass-through product:

  • Clients looking for budget accuracy and have a low risk tolerance
  • Anyone with plans to improve efficiency in the next 1-2 years
  • Clients with annual usage that varies notably and has a higher chance of decreasing than increasing
  • Anyone involved in a buying group
    • You want to limit the socialization of demand charges. Otherwise, you could end up paying for the costs of less-efficient buildings.

What should you expect when passing through components?

  • The costs for any passed-through components will vary throughout the term of your contract.
  • On you electric bill, you’ll see the published tariffed rates for your pass-through pieces.
  • You won’t have any hedging premiums on your passed-through components.

Is a partial fixed product right for you?

The list of qualifiers above is by no means exhaustive. The real answer is unique to you based on your risk level, usage profile, and the nature of your business.

If you’d like to learn more, take our Risk Tolerance Survey or contact us to be paired with an energy advisor.

 

Learn about other electricity products:

About the Author

Calvin is a Certified Energy Manager and has served as a Senior Strategic Energy Advisor at Nania Energy since 2010. He specializes in preparing property management boards to make informed decisions on energy efficiency through proper industry education. His clients include apartment complexes, condominium associations, and senior living facilities. In his free time, Calvin enjoys music and coaching youth sports.

Calvin can be reached at (630) 225-4554 or ccornish@naniaenergy.com.

 

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What is a Fixed All-In Product?

Video Transcript

Hi! I’m Mike, and I’m a Senior Energy Advisor here at Nania Energy. Whether you’re new to energy buying or you’ve been buying for quite a while, you’ve probably heard of a “Fully Fixed” or “Fixed All-In” product.

In today’s video, we’re going to do a deep dive into what a fixed product is, the pros and cons of choosing a fixed product, and why it’s such a common choice among energy buyers.

What is a Fixed All-In Product?

Your energy supply charges are made up of five pieces of the pie shown here.

  • Energy by far is the biggest. These charges are at least 50% of the pie. Energy Components Chart
  • Next is Capacity. Capacity relates directly to when you use energy and how you use energy during peak times over the course of a year.
  • Next is Transmission. Transmission are the charges of the energy going across the wires from the grid to the place where the power is being used.
  • Up next is Losses. Losses is a small portion of your bill, but that’s related to the loss of energy over the wires that the utility gets to recoup charges for.
  • Lastly is Ancillaries. Ancillaries make up a small portion, just like losses. Those are miscellaneous charges — anywhere between 30 and 50 different charges — that are put into a catch-all bucket.

So, with a Fully-Fixed product, we’re locking all 5 pieces* of the pie into one rate.

*Note: Depending on the market, all or some of these components may apply. For example, in Texas capacity/reliability costs are included in the energy component rather than separately charged for.

Pros & Cons of a Fixed All-In Product

Now that you understand the components of the energy pieces that go into the pie, we’re going to talk about the pros and the cons of a Fully-Fixed Product.

Pros

  1. You have the same rate regardless of usage. Your rate won’t change based on seasonality or any major variations in your monthly usage.
  2. It makes budgeting easy and predictable. You estimate your annual usage, you times it by the rate, and you get your budget for the year. There’s no worrying about variable month-to-month charges when estimating what your budget might be.
  3. You can take advantage of the market. As we’ve seen historic lows over these last couple of years, locking in a longer term — say, 24, 36, 48, or even longer — can yield tremendous savings and protection over the long term.

Cons

  1. You have little to no flexibility. Say your facility gets more efficient and your capacity numbers improve. You’re locked in at an artificially higher rate than you would be if you were able to take advantage of those efficiency improvements in the facility.
  2. There are built-in premiums. While you have budget certainty by locking all the pieces of the energy pie, there are premiums built into each of those pieces that suppliers use to hedge their risks. So while you have premiums attached to each of those, you’re paying a little bit of a higher rate than you would with another product.
  3. Is now the right time to lock? While this could be viewed as a pro — similar to market timing — I get asked a lot “What if I lock and then the market goes down?” I usually ask in response “Would it bother you more if the price went down another 1-2 percent or if it went up 5-10 percent?” It’s about market timing and what you’re most comfortable with at that time.

Why is Fixed All-In a popular product choice?

So why is Fixed All-In such a common choice for new energy buyers?

  • It’s easy to understand. You have one fixed rate on your bill and you’re good to go.
  • There’s no guesswork. When it comes to your budget, you have the ultimate budget certainty.
  • You have an apples-to-apples comparison when you’re shopping with other suppliers.

Should you choose a Fixed All-In product?

Is a Fixed All-In product the best choice for you? Or is there another product that might fit better with your strategy and your facility?

Contact an advisor and we can have a conversation about your electricity purchasing options.

Thank you for watching!

Learn About Other Electricity Product Options:

Index Product

Pass-Through Product