FIXED PRICE PRODUCT
Description: A fixed rate product provides a secure rate per kilowatt hour (kWh) for the generation portion of your electricity bill. Your monthly bill will vary based on usage, but the rate your pay for the electricity generation will remain constant regardless of any variables in the market. Transmission and distribution charges will continue to be billed by ComEd and may be included in a single bill by the retail supplier. Options for length of the contract may vary based on the retail supplier, but fixed-price products are often available in terms as short as 6 months or as long as 60 months.
Benefits: A fixed rate is often preferred by businesses with low risk tolerance, while offering a level of budget certainty, aiding in the control of operational costs. Cost control should not be confused with immediate cost savings—although a well-timed purchase can produce cost savings immediately and over time.
A fixed price product is also a very low maintenance choice. Once you have locked in your fixed rate, you do not have to manage your electricity procurement until your contract is nearing expiration.
Points to consider: Though a fixed rate offers you protection against price spikes, it also does not allow you to take advantage of price dips. Timing is important. You want to lock in when the market is low and flat. You must weigh the value of waiting to see if the price dips further versus the risk of waiting too long before the prices rise. Long-term price certainty may come with a price premium compared to the index price.
Description: A fixed rate product provides a secure rate per kilowatt hour (kWh) for the generation portion of your electricity bill. Your monthly bill will vary based on usage, but the rate your pay for the electricity generation will remain constant regardless of any variables in the market. Transmission and distribution charges will continue to be billed by ComEd and may be included in a single bill by the retail supplier. Options for length of the contract may vary based on the retail supplier, but fixed-price products are often available in terms as short as 6 months or as long as 60 months.
Benefits: A fixed rate is often preferred by businesses with low risk tolerance, while offering a level of budget certainty, aiding in the control of operational costs. Cost control should not be confused with immediate cost savings—although a well-timed purchase can produce cost savings immediately and over time.
A fixed price product is also a very low maintenance choice. Once you have locked in your fixed rate, you do not have to manage your electricity procurement until your contract is nearing expiration.
Points to consider: Though a fixed rate offers you protection against price spikes, it also does not allow you to take advantage of price dips. Timing is important. You want to lock in when the market is low and flat. You must weigh the value of waiting to see if the price dips further versus the risk of waiting too long before the prices rise. Long-term price certainty may come with a price premium compared to the index price.