Block & Index

Coupling Index Pricing with Fixed Price Blocks to Reduce Risk

How do you know when and what to hedge?

Aspen Energy offers to our customers the opportunity to diversify their energy risks by playing both sides of the market. For a company who wants to lessen the risk of using a Fixed All-In or Indexed rate due to market fluctuations, a Block & Index program allows them to take advantage of the benefits of both solutions. These solutions include hedging during historically “good” times in the calendar year while allowing a portion of their load to float on the Index and take advantage market dips. Energy Blocks can be purchased at any time in a variety of options which can include peak or off peak hours, monthly and/or seasonal strategies. Blocks can also be layered over any given period of time, providing diversification similar to a 401k.

There is significant upside with the Block & Index strategy. However, the difficulty of implementing this strategy is understanding when, why and how much should be hedged and what should remain on the market. Aspen Energy’s experienced Energy Consultants continuously educate the customer on future market trends, regulatory changes and historical analysis. The goal is to inform our clients regarding market volatility and price risk.

Examples of Blended (Block & Index) Energy Procurement Options:

  • ATC (Around the clock) Block with incremental percentage options (i.e. 50%, 60%, 75%, 100% Blocks)
  • On Peak Block
  • Off Peak Block
  • Base Load Block
  • Summer Block
  • Seasonal Block
  • Layered & Triggered Blocks

To learn more about these energy procurement strategies or our Professionally Managed Energy Programs, contact us today at (800) 926-0046.

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  • Natual Gas Options
    Natural Gas Options
  • Electricity Options
    Electricity Options
  • Block & Index
    Block & Index
  • DR, Peak Shaving & Backup Generation
    DR, Peak Shaving & Backup Generation
  • Pools & Aggregations
    Pools & Aggregations