Gexa Energy’s Heat Rate + Index product allows businesses to decouple their future electricity costs from the energy markets, tie them to the natural gas markets, transact within the natural gas markets and enjoy the flexibility to buy fuel (natural gas) when advantageous market opportunities arise. It’s like owning your own gas-fired power plant specifically fitted to your business’ needs. Heat Rate + Index products can be incorporated into any retail product structure, whether wholesale block and index, a shaped block and index or a full-requirements type retail product.
How It Works
Gexa Energy and the customer agree to a specific heat rate for the contract term.
As the natural gas market presents more attractive prices, the customer can then lock in their electric commodity rate based on the gas market price.
If the customer decides not to lock in their electric commodity rate, then the natural gas index monthly settlement rate will be used to calculate the final electric commodity rate.
Risk Level
As prices fluctuate, our Heat Rate + Index products give customers the opportunity to take advantage of lower natural gas market prices as time passes
Heat Rate Index entails a higher risk to market volatility but may result in a lower overall price compared to a fixed price product.
Product Overview
Product |
The contracted Heat Rate is multiplied by the natural gas futures price to determine the commodity rate for any given time period |
Features |
|
Contract |
Up to 96 months or longer for credit qualified customers |
Potential |
Natural gas price volatility risk |
Advantages |
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All Commercial products are subject to specific terms and conditions in applicable customer agreements. Certain components of Fixed Price products 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.