How can I better understand electricity buying strategies?

One size doesn’t fit all when it comes to developing a customized power purchasing strategy. It's important to consider your unique usage profile, risk tolerance and budget goals. Your energy strategy could include a variety of products, each with their own characteristics.


Fixed* or Secured Price

  • A Fixed price solution offers you price stability and simplicity. You pay one fixed price per kilowatt for all of your electricity usage for the term of your choice. One-time decision, one price, one simple bill. 
  • Constellation does all the price risk management for you.
  • This solution is good for customers with a limited ability to shift load. It provides predictable load, which is consistent with historical usage.

Index

  • You do not lock in any of the costs associated with your power purchase. Your power supply price will float with the index of choice (Day Ahead or Real Time) and is not subject to any risk premiums for fixing load. 
  • This product is good for energy-savvy customers comfortable with the risks of volatile power markets. 
  • All of your usage is settled at the index of your choosing, allowing you to take advantage of market opportunities by not locking in at a fixed price. 

Flexible Index Solutions (FIS)

  • A load-following option that fixes a percentage of your energy usage over the term of the contract, while the remaining volumes are settling using the chosen index (Day Ahead or Real Time). 
  • FIS is good for customers who want price stability and the flexibility that comes with taking an active role in managing their energy costs. 
  • You have a fixed price for a percentage of your usage, even when your usage varies from events beyond your control, such as a long summer heat wave. 
  • You may lock up to 100% of usage in any or all calendar months. This would essentially result in a fixed price per kWh.

Index Plus Block

  • The Index Plus Block solution is good for energy-savvy customers willing to spend the time and effort to make ongoing decisions about when and how much power to purchase, and want the flexibility that comes with taking an active role in managing your energy costs. 
  • You do not pay for usage variance risk protection on the fixed block volumes. Any difference in the usage between actual and fixed volumes will be settled on the index. 
  • This solution allows you to take advantage of historically lower Index prices for all or a portion (Fixed Block) of your monthly kWh. 

Minimize Volatile Pricing (MVPe)

  • A structured, systematic plan that reduces exposure to electricity price volatility through an automatic time-diversifying lock-in program prior to contract flow. 
  • Employs the principles of time and targets and eliminates guesswork. 
  • Higher percentages of load are locked in when prices are lower in comparison to historical prices as opposed to basic dollar-cost averaging approaches. 

Peak Load Management

Proactively managing your usage during peak power hours, you may lower your Peak Load Contribution (PLC), which may reduce your capacity charges over time.

  • Informational access to your consumption patterns 
  • Predicted peak hour notifications 
  • Voluntary participation

Product Type

Fixed Capacity Shared Savings

Pass-Through Capacity

Fixed Capacity Notification Only

Customer Benefit Active participation may result in an invoice credit during the year followingyour participation in the program. Active participation may result in a reduced peak load contribution (PLC) and therefore a lower monthly capacity charge the following year. Active participation may result in a reduced peak load contribution (PLC) and therefore a lower monthly capacity charge when a new contract is priced.

 

Demand Response

Constellation maintains a strategic alliance with CPower Energy Management, a national demand response company. Demand Response can help your business:

  • Save on energy costs 
  • Earn revenue by leveraging existing energy resources 
  • Enhance sustainability efforts 
  • Contribute to a balanced, reliable grid

To learn more about demand response, CPower and their demand-side management solutions, visit their Knowledge Hub.