Electricity Purchasing Strategies
Professionally managed, diverse energy solutions, which combine unique fixed and index rate structures
Index Price Strategy
An Index Price Strategy offers price flexibility that represents wholesale market conditions and includes the ability to make adjustments when the market drops.
Core Benefits
- Index-driven pricing offerings centered on the regional wholesale "spot" market without market risk premiums
- Also allows flexibility to respond to favorable market conditions when floating on market prices
- There are additional potential savings opportunities for clients whose energy usage appears to be typically off-peak hours and adjust their energy consumption to benefit from lower-priced periods
- Possible risks include market risk when electricity prices are highest or have sustained upward trends (allows potential savings, but also you may be subject to higher prices)
What if I’m not sure the best choice is an index-based price strategy?
Selected Power can provide an analysis and share the savings and risk possibilities with you. Speak with an energy advisor at Selected Power to help evaluate your needs and decide which strategy best suits your company.