Capacity costs, which are usually the second highest contributor to the overall cost of energy supply, are dramatically increasing throughout much of the United States. Generally, this cost fluctuation is due to the phasing out of coal generators. These generators are becoming relics in the modern era, and many are being shut down. Conversely, natural gas generation is on the rise, but it does have a few drawbacks: its pricing can be more variable and it’s more difficult to transport than coal. Those types of variables can translate into some power grids having to pay more to ensure reliability.
In short, capacity costs are prices paid to ensure that variable availability of power sources will not result in blackouts or brownouts, even in the toughest temperature conditions and winter and summer can produce.
Since capacity costs and changing technology can certainly shift overall energy pricing, we work to be as transparent with our customers as possible to advise of the risks they face with various plans. If low risk is the preference, we’re happy to discuss the benefits of our fixed price plans. With a fixed price plan, you will use power at a certain price rate for a predetermined, negotiated term. In today’s shifting energy market, we’ve found that this product is most suitable for the vast majority of commercial and industrial companies.
However, for our customers who can absorb a bit more risk in the quest of reducing their energy costs, we also provide a few types of index plans.
Let’s face it – purchasing energy can be very a complex process. As a result, many companies fail to secure the best energy prices, thus leaving money on the table (and quite often leaving themselves exposed to risk). Unified Energy Alliance specializes in not only purchasing energy for our clients, but also in educating our clients and simplifying the process for them. We believe that, while fundamentally complex, the process of shopping for electricity itself can be simplified. Our efficient, effective energy procurement service consists of five main steps that we explain here.
As a customer with Unified Energy Alliance, we hope you’ll appreciate how committed we are to providing you with the data to make informed decisions. Our presentations will be transparent and in as simplified of an explanation as we can offer. Like you, we’re not interested in dealing with industry jargon and lots of confusing options. We think our process, as presented by our trained energy professionals, will help to assess and choose the best approach for your business energy needs.
If you have questions about the effects that shifting capacity costs may pose to your business, or discuss the fixed and index price plans that we have available, please call us (toll-free) at 855-894-0200 or contact us online here. One of our experienced energy professionals will be happy to examine your energy costs, both present and past, and walk you through recommendations about the pricing plans that best suit your energy needs.