Energy Procurement | Lower Energy Rates

energy-procurement

US Grid Wholesale is focused on bringing you the very best Price, Contract Terms and ongoing Support from Company’s you can trust. We offer our Customers a marketplace that provides a competitive environment and allows you to choose a plan that fits you best. Through our collective buying volume and reverse auction format of bidding we are able to secure your business the lowest energy rate at the time of your bid.

Product Descriptions

energy-procurement2

Power purchasing options vary according to a company’s size, location, energy usage and appetite for risk. The five most common types of electricity pricing products are listed below.

Fixed price – Full Requirements

Companies that require budget certainty and cannot bear price risk will select a fixed price-full requirements pricing strategy. “Full requirements” implies that a customer must take delivery of all of the operation’s power needs at a certain price rate. Most suitable for the vast majority of commercial and industrial companies.

Fixed Price Block with remainder at Index w/ fixed adder

For companies willing to shoulder some risk but have concerns about letting 100 percent of their energy pricing ride on the index, a block-and-index combination is a good choice. This offers the option of reducing price, while mitigating the risk of variable pricing. This product lends itself well to a growing business that can layer in additional electricity usage as the business expands. The company can lock in a fixed price up front for a portion of its load and pay the index price for the remaining volumes. This strategy also makes sense if the company wants to lock in portions of the contract price at various times, since the company can buy multiple blocks of power over time.

Index Buying (w/ Fixed Adder)

Average of spot market settlements over the delivery period. Most suitable for industrial companies and those with appetite for risk in order to achieve the lowest possible rate. By fixing you adder you ensure that the Index price you receive is verifiable and accurate. We do not recommend any Index Product that does not have a fixed mark-up over cost.

Index with Fixed Price Trigger

This allows companies to take advantage of current market conditions and pricing with the option of locking in a price at a later time. Companies considering this option should be able to handle a moderate degree of risk.

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Risk Averse

Need 100% Budget Certainty. Hedge All Volumes

Semi-Risk Averse

Prefer Budget Certainty, but willing to take some risk to try to beat the market

Semi-Risk Taking

Prefer trying to beat the market to having a known cost

Risk Taking

Only concerned about beating the market. Float with Index and only hedge opportunistically