MVPe: Managing Your Electricity Supply with a Long-Term Strategy
Today’s energy buyers express one, or many, of these concerns about energy purchasing –
- How do I effectively manage risk and long-term budget predictability?
- How do I know I’m making purchasing decisions at the right time?
- What’s the best way to get consensus from multiple decision-makers?
- Do I have the resources and data needed to make a good decision?
Companies seek long-term certainty in energy supply costs while pursuing strategic corporate goals. Constellation’s Minimize Volatile Pricing, MVPe, is a proven cost management program to address these concerns.
Constellation will work with you to carefully examine your short and long-term needs, then you decide your purchasing parameters. Questions to consider include what percentage of your usage do you want to be locked? Do you want to manage summer vs. winter load? On-peak vs. off-peak – and more. Our team will help you develop the customized strategy that meets your goals and risk tolerance.
Energy Purchasing: Like an Investment Portfolio
MVPe is similar to dollar cost averaging in investing in that it is a structured, systematic plan that reduces exposure to electricity price volatility through a time-diversifying purchasing program. With MVPe you purchase small percentages of your electricity at regularly scheduled intervals over a longer time horizon.
Reduces price volatility and exposure to transaction risk. Making systematic purchases over time, you mitigate the risk that your business could face had you taken a single “point-in-time” position and the market retreated.
Remove the emotion and guesswork of making purchasing decisions by utilizing a systematic approach to locking-in your electricity supply. This frees you from trying to time the highs and lows of the market.
Uses time diversification to achieve a fixed price over time. Consistently purchasing up to 100% of your load monthly in advance of your power flow, you are able to leverage the power of the market and obtain price certainty.
Helps achieve budget certainty and maintains flexibility in your purchasing strategy. You define the purchasing period, volumes, and components you wish to fix or pass-through. You control the parameters, MVPe executes on your behalf.
Using the MVPe program you will receive better long-term budget predictability than a point-in-time purchasing strategy might provide and reduce anxiety over making purchasing decisions at the right time in volatile markets.