Electric Energy Solutions

Pricing Strategies To Maximize Your Savings

Fixed vs. Index? Which to Choose?

Fixed or Index? Which is the best procurement strategy for your business? A “Fixed All-In” price does not always mean that ALL components are fixed. The Index Rate client could bear the full risk of market volatility.

We conduct a complimentary energy analysis to determine the best possible procurement strategy for your business. Aspen Energy will recommend the most aggressive of its energy suppliers to meet your electricity needs.

If a Fixed All-In strategy is the best strategy for your company, Aspen Energy will ensure the supplier of choice has clearly listed on your contract what exactly is included in the “Fixed All-In” and what is “floating”. Without this consultation from Aspen Energy, it is difficult to determine a true apples to apples comparison between quotes.

Index Price typically refers to a market based agreement but with Fixed Pricing, components of capacity, transmission, ancillaries and losses can be included in a fixed adder to lock in these costs while the price of energy floats on the market. The benefits of using an index price agreement includes little to no premiums for load shaping, load following or forward risk. Index pricing option can include a fixed energy component.

Electric Fixed Pricing Options

A fixed price typically refers to a “Fixed All-In” agreement but a fixed procurement strategy can include (or pass through) any or all of these components: capacity, transmission, ancillaries and losses. These elements may also be “hedged” for a premium. The benefits of a “Fixed All-In” price includes price certainty and simplicity.

Electric Fixed Pricing Options

A fixed price typically refers to a “Fixed All-In” agreement but a fixed procurement strategy can include (or pass through) any or all of these components: capacity, transmission, ancillaries and losses. These elements may also be “hedged” for a premium. The benefits of a "Fixed All-In" price includes price certainty and simplicity.

Fixed Pricing

Fixed with Pass Throughs
Fixed - Full Requirements
Fixed with 10% - 100% Bandwidth
Block and Index

Index Pricing Options

Determining the best strategy for your company when deciding on an indexed agreement is extremely important. Aspen Energy will help you decide on whether to secure an agreement tied to the Day Ahead or Real Time Index LMP and which components should be included or passed through based on your ability to manage and shift load. The benefits of using an index price agreement includes little to no premiums for load shaping, load following or forward risk and you will benefit from a lower energy cost. Index price agreements offer rate flexibility and diversification.

Index Pricing

Energy Only
Index with Adders
Index with Cap
Index with Trigger

Additional Aspen Energy Solutions

Aspen Energy will create an individualized procurement plan that will maximize your company’s ability to contain energy costs. By using high level energy management programs, blended energy strategies, load management and tracking software, Aspen Energy helps you maximize energy savings.

Natural Gas

Our Energy Consultants will provide you with the knowledge you need to make the best energy choices to minimize your risk and maximize your savings.

Energy Efficiency

The environmental impact of a company is referred to as its carbon footprint. Your business’s carbon footprint is directly affected by activities that are within your control.

Government Aggregation

Aspen Energy works with many villages, cities, and municipalities to pool their residential and commercial energy loads together to provide buying power.

Demand Response & Peak Shaving

Aspen Energy continues to see an increase in the number of customers willing to curtail their energy load to receive benefits from Peak Shaving or Demand Response Programs.

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