ENERGY SERVICES

 

FIXED RATE 
 

For cost control, predictable budgeting and stability, this is the type of product that you want. If you operate your business in a volatile gas or power market, then a fixed rate will serve as a very effective buying strategy. We can provide you with guidance in choosing the type of fixed rate plan along with contracting details so that you choose the right product that aligns with your future load changes and budgeting objectives.

 

PROS: 100% price & budget stability, consumption flexibility

CONS: if you are a big energy consumer, there are perhaps better rates and programs available

RISK PROFILE: Low

7.00

6.75

6.50

6.25

6.00

5.75

5.50

5.25

5.00

4.75

4.50

4.25

4.00

3.75

3.50

3.25

3.00

 

Jan  Feb  Mar  Apr  May  Jun  Jul  Aug  Sep  Oct  Nov  Dec

variable price ($)

price certainty

Fixed with Full Requirements

 

The simplest and most straightforward plan, the Fixed with Full Requirements option combines everything into one simple, comprehensive, easy-to-understand price per kWh (or MWh). Electricity costs including energy and additional costs related to grid reliability are secured for the contract term.

Best For: Customers who require the highest degree of budget certainty through all aspects of their commercial electricity plan.

Defining Features:

  • Fixed supply price for budget certainty

  • No surprises or additional charges on your bill

     

     

     

     

     

     

     

     

     

Fixed with Limited Pass-Through 

 

 

Those customers who understand the cost components of electricity pricing know that energy is the largest price component with the highest volatility. Additional market-based costs related to grid reliability on average are less. If securing a fixed price for energy while maintaining greater visibility into other cost components fits into your budget, this is the commercial electricity plan for you. As with all fixed price plans, your electricity supply price per kWh or MWh remains the same throughout your contract. However, market-based charges associated with grid reliability are passed directly through to you.

Best For: Customers who desire overall budget certainty, but can accept minor risk in exchange for greater transparency into costs.

Defining Features:

  • Fixed supply price for budget certainty

  • Market-based grid reliability costs are passed through at cost

     

     

     

     

     

     

     

     

     

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7.00

6.75

6.50

6.25

6.00

5.75

5.50

5.25

5.00

4.75

4.50

4.25

4.00

3.75

3.50

3.25

3.00

 

Jan  Feb  Mar  Apr  May  Jun  Jul  Aug  Sep  Oct  Nov  Dec

fixed price ($)

Real-Time Index with All Pass-Through​

MARKET INDEX  
 

Floating the spot market can be beneficial depending on your load shape. Especially popular with companies whose load is more equipment dependent than people dependent, an index plan can allow you to save on electricity by operating during off-peak times and shutting down during peak usage periods. The better you know your business, the better you can adjust to changes in the market.Contact us and see which plan is right for you.

 

PROS: short-term, flexible and easier to switchover

CONS: market exposure volatility

RISK PROFILE: High

Day-Ahead Index with All Pass-Through

 

All costs are passed through with this plan, which responds directly to movements in the day-ahead electricity market. Built for a company that can predict and adjust its load for the following day, this plan helps the savvy customer take advantage of daily ups and downs to achieve a lower overall electricity bill.

Best For: Customers with a deep understanding of electricity markets, high risk tolerance and/or the ability to adjust their load from day to day.

Defining Features: 

  • Price floats on the market index, responding directly to market movements

  • No uncertainty premium associated with this type of plan

  • Price tied to day-ahead market; determined by predicted load and conditions

     

     

     

     

     

     

     

     

 

The Real-Time Index plan passes through market-based prices just like the Day-Ahead Index plan does. However, it’s based on the more volatile real-time electricity market, which is used to balance load on as little as 5-minute intervals. This type of plan is best suited for a company that can adjust its load in a matter of minutes to respond to market opportunities and price spikes.

Best For: Customers with a deep understanding of electricity markets, high risk tolerance and/or the ability to adjust their load in a matter of minutes.

Defining Features:

  • Price floats on the market index, responding directly to market movements

  • No uncertainty premium associated with this type of plan

  • Price tied to real-time market; more volatile than day-ahead market

     

     

     

     

     

     

     

     

     

HEDGING STRATEGIES  
 

Large energy users will enjoy spreading their eggs into different baskets by choosing a hedging strategy involving a detailed plan of action. Depending on your risk policy, risk aversion, and purchasing strategy, we will provide you with hedging options through a physical or financial contract with our largest suppliers.

 

PROS: ideal for predictable load profiles

CONS: market exposure, instability

RISK PROFILE: Medium

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30.00

28.75

27.50

26.25

25.00

23.75

22.50

21.25

20.00

18.75

17.50

16.25

15.00

13.75

12.50

11.25

10.00

8.75

7.50

6.25

5.00

3.75

2.50

1.25

0.00

volume (MW)

base load 

Block and Index


With our Block and Index plan, you can lock in certain portions of your electricity demand. Remaining demand is purchased at the market index, which allows you to take advantage of falling market prices. This gives you the ability to layer different pricing strategies together to create the best mix of stability and opportunity for your company.

 

Best For: Customers who need a degree of certainty, but want to maintain the flexibility to float a portion of their load on index when market prices are advantageous.

Defining Features:

  • Manually fix specific portions of electricity load for budget certainty

  • Let remaining load float to take advantage of market opportunities

Hybrid                                

 

An alternative to the Block and Index product, Hydbrid products combines the freedom of index market pricing with the certainty of locking in a fixed price for up to 100 percent of your usage. With the Price Lock feature, you can take multiple fixed price percentage purchases using the “dollar-cost-average” approach to find the price certainty you’re looking for.

 

Best For: Customers who want to maximize flexibility while retaining the ability to lock in fixed pricing for 20 percent to 100 percent of their spend.

Defining Features:

  • Leverage index pricing without sacrificing ability to lock in 100 percent of your usage

  • Multiple locks allow you to “dollar-cost-average” your way to a fixed positon

Heat Rate

 

If you want the ability to fix the price for portions of your load on an ongoing basis to respond to natural gas market movements, this is your plan. It’s similar to a Block and Index plan, except that you fix portions of your load based on specific natural gas prices, not simply on load requirements. This helps you avoid locking into overly long high-priced positions and take advantage of price drops.

 

Best For: Customers who understand how to take advantage of natural gas market movements and desire a greater degree of certainty than pure float plans.

Defining Features:

  • Fix portions of electricity load based on natural gas price movements

  • Let remaining load float to take advantage of gas market opportunities

 
 

peak block 

COMMERCIAL NATURAL GAS

 

In recent years, states across the country have developed competitive markets for energy, enabling smaller customers to choose who supplies their natural gas. Natural Gas Choice gives you the chance to consider a plan that more closely meets your energy needs to better serve your budget. By choosing a different pricing option it provides you with an additional opportunity for savings.

Natural Gas Choice is still fairly new in many parts of the U.S. Customers that are located in states offering Natural Gas Choice have already experienced the benefits: more competitive energy prices, improved customer service, and technological and product innovations.

 

How It Works

With our Natural Gas Choice Program, we can bring the natural gas premium services and products that are typically reserved for large customers to businesses of all sizes. We help secure highly competitive pricing and a full array of energy management products and services that help Choice customers identify, understand, and manage the variables that affect the price they pay for natural gas.

 

Given the vast amount of information and suppliers in today's natural gas market, businesses often struggle to identify the most cost effective gas procurement strategy for their energy spend.

 

Businesses are faced with diverse and challenging objectives. Fortunately, there are several options to be considered to meet those objectives.

 

We factor in goals and objectives in concert with current and future market risks and opportunities to help customers develop and implement the most cost-effective solutions.

 

With our transactional price solutions, businesses can fix all or a portion of their gas volume while purchasing the remainder at a spot or index price. We also help procure a host of full-service solutions that range from simple to complex, with varying degrees of budget certainty and risk.

 

RENEWABLE ENERGY CREDITS

 

Pathway is able to provide green power options by helping procure the purchase of an environmental trading commodity known as a renewable energy credit (REC). RECs are created when a qualified renewable energy generation facility (like a wind farm or solar array) produces electricity. They represent the added value in terms of renewable energy’s environmental benefits and costs when compared to conventional means of producing power. We facilitate the purchase of RECs from suppliers who offer wind farms contributing electricity to your local grid, then ‘retire’ those RECs in direct proportion to the amount of energy you consume. In this way, you can be confident that every kWh you use is helping to promote and support the continued development of green energy infrastructure in your area.

 

BEST SUITED FOR COMPANIES THAT:

  • Looking for ways to preserve the environment

  • Want to conserve natural resources

  • Promote the growth of renewable energy infrastructure

 

How It Works

Green power provided through the purchase of an environmental trading commodity known as a renewable energy credit (REC)

 

When electricity is generated from a renewable energy source, it is separated into two components:  

1.    The electricity produced
2.    The environmental benefits of that electricity generation

The environmental benefits include the greenhouse gases avoided by generating electricity from renewable sources rather than conventional fuels. These environmental attributes are calculated and sold separately as RECs.

RECs are measured in megawatt hours of electricity. One REC is created by each megawatt hour added to the North American grid from renewable energy sources like wind, solar, and biogas.

Purchasing RECs supports projects that reduce the greenhouse gas emissions associated with the production of grid power. It is the most common and cost effective way for you to be 100% renewably powered.

 

MARKETS WE SERVE

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