6 Energy Supply Options to Purchase Energy More Effectively

By: Jeff Sapirman, AMERIgreen Energy

Energy costs for your building or office represent a significant portion of your business’s budget. When securing your annual supply of power and gas, there are a variety of supply options you should be considering. Depending on your business and facility you could be missing out on significant savings.

These energy supply options for power and natural gas offer opportunity across the risk spectrum for your business:

  • Fixed Price – For customers seeking stability and simplicity for their electric or natural gas supply, a fixed price covers all costs for usage for the duration of the term.
  • NYMEX plus Basis – A locked-in, fixed basis rate for the duration of your natural gas term. This contract fixes the difference in locational value, while the commodity cost is left open to float with NYMEX market price on a monthly basis, so it is a monthly variable.
  • Blend & Extend – Extend your contract for another year and lock in the next year’s rate blended with this year’s rate. A great way to hit your budget or spread out electricity or natural gas operational costs over a longer period of time.
  • Block & Index – For flexibility in managing your power costs, you can fix a price for a per unit (kWh) amount of your usage and pay the market price on the remaining usage.
  • Index (Variable) – Day-Ahead or Real-Time index pricing is available for customers who wish to purchase their entire electric load at market rates.
  • Custom – Combinations of different fixed and market-based cost components can be defined for a custom pricing solution.

Trusted Energy Consultant

With this information in hand, and by learning how each functions, we recommend talking with a trusted energy consultant to help determine which option is best for you.

A qualified consultant provides businesses with advice and offers customized, money-saving solutions. We provide customers personal consultation to help them save money and keep ahead of changing energy prices. We would be happy to provide a quote for your unique requirements. You can learn more here: www.amerigreen.com/nyshta.

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