Managed Procurement Program
Businesses using natural gas share a common challenge: how to guard against the volatility of an unpredictable market.
Rather than absorbing all the risk associated with a single procurement method, businesses in Constellation’s Managed Procurement Program spreads risk across several hedging alternatives and improve their protection.
A uniquely defined hedging strategy, the Managed Procurement Program helps customers manage price volatility, mitigate risk exposure and make smart natural gas business decisions.
Inside the Program
The Managed Procurement Program offers risk management tools along with a diversified portfolio of weighted procurement alternatives, including:
- Fixed price
- Call options
- Monthly index
- Daily index
Constellation’s energy experts help businesses by selecting the appropriate blend of hedging alternatives for given market conditions. The resulting strategy diversifies hedging types to limit high-price exposure while maximizing low-price potential.
Natural gas business customers can enroll in the Managed Procurement Program in segmented fiscal periods that begin on April 1 each year and end on March 31 of the following year.
Customers have options for multi-year terms. Enrollment remains open until March 15 for any subsequent program fiscal year.