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Texas Heat Rate

The Texas Heat Rate Product offers your business flexibility and new opportunities to optimize your electricity spend in a market where natural gas prices are the primary determinant of overall electricity costs.

This product offers an alternative to entering in to a fixed price contract when prices are at relative highs and provides added risk management value through a Fixed Price Trigger Option. The Trigger Option gives you the ability to convert the variable natural gas portion of your supply price to a fixed price to mitigate the impact of a rising market. 

Why Choose Texas Heat Rate Product?

Looking for a partial lock? Heat rates allow you to lock in a conversion factor between the gas and electricity markets and take advantage of gas market movements to achieve a better electricity price.  

Whether you are looking for a flexible purchasing option, or you believe that more favorable market conditions lie ahead, the Texas Heat Rate Product is typically recommended for businesses that have an employee or a department dedicated to understanding the natural gas market. Understanding the market will allow your business to take advantage of market downturns and to hedge against market upswings. 

Texas Heat Rate Product Facts:

  • Product is only available for customers located in Texas.
  • The monthly price for electricity will move with the natural gas market until you decide to lock in a fixed price for the natural gas rate. 
  • Once locked, Heat Rate will be converted into a fixed price per kWh. 
  • Fixed Price Trigger is the term used to describe the option embedded in the Heat Rate contract, which allows you to lock in the variable gas component of the billing calculation. 
  • The pricing for the Heat Rate Product is based on the quoted Heat Rate value (which is fixed) and the monthly settlement price ($/MMbtu) for the NYMEX Natural Gas Futures contract. 

Want to Learn More? Contact us today at 888.925.9115 or fill out the form on this page to find out how the Texas Heat Rate Product could help make your business better. 


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