NextEra Energy Services' LMP product allows businesses to purchase their commodity rate based upon LMP (Locational Marginal Pricing Index). Businesses with a higher risk tolerance can float the spot market to take advantage of downward market movements. Businesses have the flexibility to potentially convert to a Fixed Price product once market conditions are more favorable.
How Market Energy Index Pricing Works
The graph represents how the Local Marginal Pricing Index, in green, fluctuates up and down; while the fixed price is a steady blue horizontal line.
Risk Level
Image displays various levels of risk with fluctuating energy prices, indicating the Location Marginal Pricing (LMP) Index offers a higher risk tolerance and the Fixed price offers a lower risk tolerance.
Product Overview
| PRODUCT | Locational Marginal Pricing (LMP) product is based on real-time, 15 minute interval market prices and is a variable rate. The commodity rate is based on where LMP settles in the wholesale market. |
| FEATURES | Commodity rate based on spot market published index prices Retail Adder covers specified ancillary fees associated with the supply of retail electricity |
| CONTRACT OPTIONS | Up to 60 months |
| POTENTIAL RISK | High |
| ADVANTAGES | Flexibility to manage calculated risk for financial savings |
All Commercial products are subject to specific terms and conditions in applicable customer agreements. Certain components of this product may fluctuate and certain changes maybe separately billed or passed through to customer, including utility charges and taxes. NextEra Energy Services makes no representation or warranty as to actual product prices or the direction, trend, movement level or range of product prices, wholesale or retail electricity or natural gas prices, and customer is relying on its own judgment and upon advice from advisors as it deems necessary, and is solely responsible for determination of its risk tolerance for any product and its decision to purchase any product and related risks. No communication--oral, written or electronic--from NextEra Energy Services will be deemed to be representation, assurance or guaranty as to the expected service or performance of any product. NextEra Energy Services operates through various affiliated entities.