When it comes to commercial energy buying, you are likely most familiar with fixed price electricity contracts. Although these contracts are a more common method of energy procurement, they may not be the best strategy for you.
Market 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. You can select whether you want to fix the price of separate charges for components associated with retail electric supply, such as capacity and transmission, and add that price to the retail adder.*
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 electricity commodity price 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 the customer contracts. Only the price per kWh for electricity commodity is fixed. Charges imposed for all components associated with retail electric supply, such as capacity and transmission, are subject to increase under any adjustment provisions or change in law provisions set forth in the contract. Taxes and utility charges are also separate charges paid by customers. NextEra Energy Services makes no representation or warranty as to actual product prices, and/or the direction, trend, movement level or range of product prices and wholesale/retail electricity or natural gas market prices. Each customer must rely on its own judgment and advice from its advisors about these matters. Further, each customer is solely responsible for determination of its risk tolerance for any product and its decision to purchase any electricity product under any product structure. No communication - oral, written or electronic - from NextEra Energy Services or its affiliates 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 affiliates.