NextEra Energy Services’ Block & Index product allows businesses the opportunity to fix a portion of energy usage (a block) and the flexibility in the future to: (1) adapt to increased carbon regulations; (2) take advantage of changing market conditions (lower prices); and/or (3) benefit from technological advances designed to help with carbon reduction or lower costs.
You can execute a block when you secure your initial energy supply contract, or you can start your contract on 100% index and execute blocks in the future as more favorable pricing opportunities present themselves. Our “block” structures are varied and designed to help meet your risk-reward appetite. A Block & Index strategy comes with flexibility, but it does carry moderate price volatility risk, as portions of your energy will be subject to market rate fluctuations.
How Block + Index Works
With this strategy, your energy in the blocks are billed at a fixed price
Any energy bought or sold in the index markets are settled and billed at the applicable index market rate
Risk Level
Block & Index strategy comes with moderate price risk
Portions of your energy will be subject to applicable index market rate fluctuations
Product Overview
Product |
Block(s) + Index |
Features |
|
Contract |
Up to 90 months and even longer for creditworthy customers |
Potential |
Price volatility is moderate |
Advantages |
|
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All Commercial products are subject to specific terms and conditions in applicable customer agreements. Certain components of this product 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 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.