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March 29th, 2012

For the right clients, Real-Time and Day-Ahead pricing products provide low cost power

by Andrew Price, President & COO

The vast majority of end-users who participate in the competitive electricity marketplace buy fixed-price fixed-term contracts. And for good reason. The fixed-price fixed-term contract structure offers budget certainty and provides insurance against price spikes over the term of the contract. Certain end users, however, are willing to forego budget certainty in exchange for a lower average price over time. For these folks, buying their electricity in either the real-time or day-ahead market may make sense.

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