several components involved in formulating electricity
purchasing strategies, usage patterns, load
requirements, ability to tolerate risk, market
conditions and market projections are all
considerations. We will work with you to understand and
identify your specific set of needs and goals. We then
will tailor a purchasing strategy that meets your
goals. Best Practice Energy’s goal is to advocate for
our clients in the market insuring best market position
and lowest cost. We make certain our clients are in
Best Practice” for their energy procurement and
management needs. We put our expertise and resources to
work for you making sure you are taking full advantage
of energy deregulation. Below are some specific market
- Deregulated in 1998 with a rate cap.
Competition is intensifying now and purchasing strategies,
both wholesale and retail are available. Our
advisors will help design a purchasing strategy the
enables your company to take full advantage of the
intended benefits of energy deregulation.
Massachusetts - Deregulated March of 1998. Mass market is
highly volatile which makes budgeting for energy
difficult. Rates are set by each utility and at different
times, several times a year. Our consultants will work
with you to formulate a purchasing strategy that enables
your company to manage your risk and receive the most
from your energy budget.
Connecticut - Supplier licenses were issued in December
1999. In most parts of the state supplier choices were
available as of July, 1 2000. Currently Connecticut
utility rates are the highest in the country. Our
analysts will develop a purchasing strategy that will
help avoid these high rates and position your company in
the market well below the utility rates.
Maine - Utility rates since 2001 have almost doubled.
This market is deregulated and competitive electric
supplier pricing is available. Our analysts are experts
at designing purchase strategies to lower costs and
deliver budget stability.
New York - One of the most volatile markets, managing
costs and budget stability in very difficult. The
utility rate changes every 45 days. Depending
on your risk tolerance, we have the resources to help
take the guess work out while reducing costs and
New Jersey - This market is deregulated. Competitive
pricing and product options are available. Our
consultants will work with you to formulate a strategy
and guide you through the process.
Below is a map of all the currently deregulated states.
We have the relationships and resources to provide
solutions in all deregulated states.
Much like electricity, in several states, legislators and
the Public Utility Commission have opened the natural
gas market up to competition through deregulation. Most
states that are deregulated for electricity are also
deregulated for natural gas. However you may be in one
of the states that is only deregulated for natural gas.
Our consultants can work with you to identify
opportunities. Our best practice approach also applies
our natural gas programs. We will work with you to
identify your needs and design a tailored risk management
and procurement strategy. Again, we will guide you through the
bid process and manage implementation.
Fixed Price Product
The fixed price product locks in the commodity rate and
the interstate pipeline transportation rate. Fixed
pricing is available for up to a 3 year term. Much like the
fixed product(s) this provides the customer
budget stability avoiding market volatility.
Basis + NYMEX Product
This market-based product locks in the transportation
rate for the term of the contract and “floats” with the
monthly settlement commodity rate on the New York
Mercantile Exchange (Nymex). This settlement commodity
rate is then added to the transportation
rate to produce
a variable monthly cost of gas rate. At any time during
the term of the contract, the customer has the option to
convert into a fixed price product. A market-based
contract is most applicable when natural gas commodity
prices are high, and projections indicate a decrease in
Interruptible Transportation Service Product (dual
Specific natural gas volumes are purchased and are
combined with alternative fuel sources to satisfy load
requirements. This product is for those customers that
have the ability to burn fuels other than natural gas
and can allow a customer greater flexibility to use the
less expensive fuel. The utility however, will force a
customer to go on alternate fuels during extreme cold
days so there is some unpredictability with natural gas
availability in the winter months. In some cases a
customer can avoid this by negotiating with the utility
to guarantee a certain availability of service.