Monthly Index LMP: This option is best for
businesses that believe energy cost is
going to decline in the future or that can adjust their energy usage during
periods of high prices. A variable price option whereby customers pay based
on their hourly consumption and the hourly utility clearing price. Non-energy costs
are covered at a fixed price added onto the energy cost. At any point in time a
customer can convert from a variable to a fixed rate program.
Fixed energy only: This solution is best for customers who want to gain
control over a major portion of their energy cost. The cost of the actual
electricity commodity is fixed, but the ancillary costs are passed on to the
customer directly. The ancillary costs are not easily predicted because many
variables affect these rates like congestion, reserves and regulation, etc.
Often this fixed energy-only program is a less expensive option than an "All-in"
program; however, you are exposed to ancillary cost increases.
Fixed "ALL IN": As the name implies this is a fixed price plan for the entire
term of your contract that includes the cost of the electricity and all of the
ancillary costs. This option provides certainty for your monthly budget and
protects you from market price volatility and ancillary cost increases.
To learn more about Nordic Energy’s electricity solutions, please contact us.