Electric Heat Rate Solutions from Integrys Energy Services

Heat Rate Solutions offer your business the ability to protect itself against adverse price fluctuations.

If you are accustomed to hedging natural gas and/or have revenues that are linked to natural gas, a Heat Rate Solution allows you to take advantage of your knowledge and energy market experience. In markets where much of the electricity is produced by natural gas fueled power plants, the price of power is closely tied to the market price of natural gas. Therefore, hedging through our Heat Rate Solutions offers your company more price transparency.

Features

  • Price Transparency - Future power prices are directly indexed[1] to natural gas prices, via a heat rate, for the life of the contract. A retail fee takes care of all regional transmission organization related charges[2], while your business captures the resulting savings.
     
  • Business Advantage - If your company is comfortable buying natural gas futures and has energy market experience, now you can put that advantage to work for you. This is an excellent opportunity for businesses whose revenues or electric power prices are highly correlated to natural gas prices.
     
  • Choices - A range of Heat Rate Solutions are available, varying in how non-energy charges are handled. Depending on your needs, we can: (1) include non-energy charges in the forward power price based on assumed power consumption, or (2) include them in a fee based on the volume used, or (3) directly bill you for the regional transmission organization and retail related charges.
     
  • Flexibility to Meet Your Needs - Your business has the ability to hedge your power price by locking in specified values of gas at a specified price.

[1] NYMEX is the preferred gas index; downstream market price indexes are based on transparency and liquidity.
[2] All volumes beyond any hedged volumes will be billed at an Index price. Similarly, all volumes hedged but not used will be credited at the Index Price.

Please note: Integrys does NOT offer the Heat Rate Solutions product in the following states: Delaware, District of Columbia, Maryland, Pennsylvania, New Jersey, New York (Consolidated Edison), Virginia

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