When it comes to commercial energy buying, you are likely most familiar with fixed-price energy contracts. Although fixed-price contracts are a more common method of energy procurement, they may not be the best strategy for you.
Energy prices fluctuate all the time. At any given time, some years' energy prices may be high, others low. Rather than trying to time the market to fix your energy price all at once, you can execute a procurement plan that allows you to take advantage of future buying opportunities without fully exposing yourself to price risk.
How Managed Services Works
- Capitalize on energy-market access to hedge against index volatility over time and as conditions warrant.
- Take advantage of any underlying commodity product structure (index, block, heat rate, Retail + Renewables).
Risk Level
- Suitable for a wide variety of risk profiles
- Allows for any level of exposure to index pricing
As a Managed Product Services customer, you get the flexibility to augment your energy strategy over time with renewables, demand response and other energy initiatives, while also the freedom to take advantage of future buying opportunities. Managed hedging allows you to lock in varying blocks of energy at different times over the course of multiple years. This is a forward-looking approach, allowing you to build into a fixed price with a more certain budget.
Key Benefits
- Freedom to take advantage of market dips while limiting budget risk
- Flexibility to realize capacity cost reductions and energy efficiency savings
- Choice to slowly move to 100% fixed over time
Well-executed hedging strategies can help companies mitigate price risk, budget and forecast more accurately, and enjoy flexibility. If your organization is looking to optimize its energy savings while also incorporating carbon reduction initiatives, a Managed Product approach should be investigated.
Explore More Energy Options
Energy Optimization
Today’s commercial energy and sustainability strategies must include deeper insight. Our high-powered analytics tool can reveal cost-effective energy solutions for your organization.
Block and Index
This customized energy management strategy incorporates stability and flexibility. Here, you fix a portion of energy usage and any energy used above or below block volumes settle on an Index product.
Renewables & Reliability
Meet corporate sustainability goals through planning, reporting and renewable energy sources, and ensure energy reliability in your operations with our unique service offerings.
All Commercial products are subject to specific terms and conditions in applicable customer agreements. Certain components of Fixed Price products may fluctuate, and certain changes may be 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 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.