Gexa Energy's Block & Index product allows businesses the opportunity to fix a portion of energy usage during peak hours of operation. The excess energy usage above and deficient energy usage below block volumes can settle on an Index product. This product provides a measurable degree of budget certainty, while allowing businesses with the right risk tolerance to float the spot market and take advantage of downward market movements.
How Block(s) + Index Product Works
Block and Index solutions reduce exposure to price volatility and flexibility to manage calculated risk for financial savings.
Risk Level
Image indicates Fixed Price offers the least risk and Location Marginal Pricing (LMP) Index offers the most risk. The Block and Index risk level indicator is in the middle.
Product Overview
| PRODUCT | Block(s) + Index |
| FEATURES | Fixed commodity rate for block volumes Usage above or below block volumes settles on LMP prices Retail Adder covers specified ancillary fees associated with the supply of retail electricity |
| CONTRACT OPTIONS | Up to 60 months |
| POTENTIAL RISK | Moderate |
| ADVANTAGES | Price transparency Measurable degree of budget certainty Flexibility to manage calculated risk for financial savings Reduce exposure to price volatility Flexibility in determining the volume that you want to set against market based prices Expert advice from your Gexa representative on how to best manage a block index strategy |
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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. Gexa Energy 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 Gexa Energy will be deemed to be representation, assurance or guaranty as to the expected service or performance of any product. Gexa Energy operates through various affiliated entities.