Fixed price natural gas and electricity
Budget your energy expenses with a competitive, fixed rate. All businesses can protect their budget from electricity rate hikes with fixed price electricity from Commercial Power, LLC. We work to analyze your electricity consumption and offer you fixed rate options from competing suppliers for the length of your contract agreement. We make it easy to compare our rate quote with your current utility provider.
What is a fixed price energy contract?
Fixed price natural gas or electricity contracts allow businesses the benefit of fixing your utility rate for an agreed-upon period of time. During this period of time, your natural gas and electricity rates will not increase. Fixed price energy contracts can help you plan your budget projections more accurately and protect your bottom line from rising energy costs or the threat of impending inflation.
The agreements from our suppliers range from 6 months to 60 months. The terms and conditions of your contract may vary based on regional legislation and your individual usage profile. We will help you determine which plan is right for you.
Your natural gas and electric service will continue uninterrupted from your existing utility. Your electricity supply is still delivered to your business by the local distribution company or utility in your service area. This local utility will continue to provide maintenance, read your meter and respond to emergency service calls. The utility company will continue to deliver your energy, we are helping you just with purchasing the supply.
Your rate is based off a margin or index and moves up and down as the market fluctuates. Many clients who anticipate a poor or troubled economy usually choose a variable rate in the belief that the market may move towards a more favorable position.
Some of our variable rate products are from suppliers who follow the utility indexes, but charge a smaller margin than the utility company themselves. The benefit here allows for a price that is typically 3% to 5% cheaper than the utility’s current pricing and offers the client the flexibility of no contractual limitations. Variable rates are typically on a month-to-month agreement only.
Hybrid rates are a combination of fixed and variable costs; commercial and industrial companies will choose to fix a portion of their energy supply needs. Following this methodology of keeping a separate portion “variable” allows the companies to actively hedge themselves against market peaks and valleys while satisfying customer energy supply demands.
This method is the grouping of numerous businesses and organizations into one proposal, which allows for economies of scale and better volume pricing. Each organization has their own individual contract and is not bound by default or liability for the other members in the aggregation. We have been able to realize below market pricing for clients in this manner on a regular basis and is one of our specific areas of expertise. A client in an aggregation would be required for a longer waiting period to be able to build or complete the aggregation prior to prices being set.
Utility rates are regulated by a government board. Even with regulation in place, there is no guarantee that the utility rates set by the board are the lowest rates available. The utility is required to pass fair market costs along to you, the consumer. Marketers benefit by this and have the flexibility to operate more efficiently — buying their electric and gas supplies when market is less expensive, then passing those savings on to their customers.