NextEra Energy Services’ Heat Rate + Index product allows businesses to decouple their future electricity costs from the energy markets, tie them to the natural gas markets, transact within the natural gas markets and enjoy the flexibility to buy fuel (natural gas) when advantageous market opportunities arise. It’s like owning your own gas-fired power plant specifically fitted to your business’ needs. Heat Rate + Index products can be incorporated into any retail product structure, whether wholesale block and index, a shaped block and index or a full-requirements type retail product. 


How It Works

  • NextEra and the customer agree to a specific heat rate for the contract term.  

  • As the natural gas market presents more attractive prices, the customer can then lock in their electric commodity rate based on the gas market price.  

  • If the customer decides not to lock in their electric commodity rate, then the natural gas index monthly settlement rate will be used to calculate the final electric commodity rate. 

Risk Level

  • As prices fluctuate, our Heat Rate + Index products give customers the opportunity to take advantage of lower natural gas market prices as time passes

  • Heat Rate Index entails a higher risk to market volatility but may result in a lower overall price compared to a fixed price product.


Product Overview

Product

The contracted Heat Rate is multiplied by the natural gas futures price to determine the commodity rate for any given time period

Features

  • The price for natural gas fuel is transparent and liquid
  • Provides flexibility to lock in electric commodity rates as more beneficial market opportunities present themselves as opposed to locking in a fixed price for an entire term when market conditions may not be ideal
  • Heat rates can be used with any retail product: wholesale blocks, shaped blocks or full-requirements type products

Contract
Options

Up to 96 months or longer for credit qualified customers

Potential
Risk

Natural gas price volatility risk

Advantages

  • Ability to manage calculated risk in return for financial savings
  • Flexibility to potentially fix the commodity price for a specified period when natural gas prices are lower
  • Detailed historical and forecasted information available from your NextEra Energy Services representative to help you make the best buying decisions

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Ready to get started?

Contact us at 855-262-3596 or CommercialSales@NextEraEnergyServices.com

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All Commercial products are subject to specific terms and conditions in applicable customer agreements. Certain components of this product may fluctuate and certain changes may be separately billed or passed through to customer, including utility charges and taxes. NextEra Energy Services makes no representation or warranty as to actual product prices or the direction, trend, movement level or range of product prices, wholesale or retail electricity or natural gas prices, and customer is relying on its own judgment and upon advice from advisors as it deems necessary, and is solely responsible for determination of its risk tolerance for any product and its decision to purchase any product and related risks. No communication oral, written or electronic from NextEra Energy Services will be deemed to be representation, assurance or guaranty as to the expected service or performance of any product. NextEra Energy Services operates through various affiliated entities.