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USEC Blog

Is your Business Running 24/7 or in 3 Shifts?

6/11/2015

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Deregulation of Energy allows businesses who operate 24/7 or in 3 shifts to take advantage of products that other wise would not be financially feasible. 

"Well what do you mean by that Mikhail?"

I thought you would never ask, (like how I'm having a conversation with my self?) there are variety of products available to businesses, they are as follow:
  • fixed all-in
  • energy only
  • index 
  • block & index
  • on & off peak
Traditionally a business that has 3 shifts would either choose a Fixed All-in or Index.  The complexity of other products intimidated controllers and facility managers enough to keep them going back to what they know best.

Well, that is why you have an energy broker to demystify the products and guide you through the process of figuring out what works best for your business load profile.  

Index is a great product when the market is stable and especially at night, but you do run a risk of power trading @ $0.40 to $0.60 per kWh, when that happens it wipes out any benefit of having $0.01 to $0.03 per kWh power at night.

This is why I suggest for business that operates 24/7 or in 3 shifts to consider a Block & Index or On & Off Peak products.  These products do get intimidating at a glance but if your broker did their job right and identified your business as one that would benefit you should definitely listen.

Follow me the Energy Expert Mikhail Skachko on Facebook

Buy my book "
Choice of Power: Putting True Costs of Energy In The Hands of Consumers" on Amazon
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    Mikhail Skachko

    "Customer is always right, even if they are wrong." 

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