Flexible Index Solutions (FIS)
Several factors will affect both volatility and opportunity risk for purchasing power. It is important to find a strategy that helps balance these risks and helps achieve budget certainty amidst an unpredictable environment.
A fixed price may only achieve budget certainty in the short-term. By thinking and acting long-term, you can have the security of a fixed price and the flexibility to respond to market conditions over time. Percentages of load are purchased at regular intervals over a longer time horizon to smooth the curve and manage to the mean.
Features and Benefits
A proactive, long-term approach can give you the budget security your company is looking for:
- Achieves greater long-term budget predictability while allowing you to take advantage of market opportunities
- Leverages a dollar-cost averaging approach to manage your energy costs over time
- Provides a stronger balance between volatility and opportunity risks