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Layered Purchase

Manage Your Risk by Timing Purchases with the Market

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Product Summary Information
 

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PRICE FLUCTUATION

low
 
high

RISK TOLERANCE

low
 
high

INVOLVEMENT LEVEL

low
 
high


Layered Purchase Product Summary
 

Up to four locks in 25% increments; unlocked portions would continue to float on index

A load-following index product that allows you to lock in a fixed percentage of your actual usage

The final rate after the entire load is locked will be the simple average of all locks.

Locks must occur at least 30 days before the start of flow

At its core, the Layered Purchase Product is an index product that allows you to secure a price for a fixed percentage of your usage when market conditions are favorable. With this product, you are able to lock in a minimum of 25% of your load at a fixed rate. Additional purchases can be made in 25% increments up until you reach 100% of your load in aggregate. If the entire load is secured, the simple average of all locks will be your final fixed price. Any portion that remains unfixed will float on index, effectively making it a hybrid product. The Layered Purchase Product can offer the security and functionality of a fixed price product, or it can act as a hybrid product, should you leave a portion of your contract unlocked.

BEST SUITED FOR COMPANIES THAT:

  • Want to time purchases with the market
  • Can tolerate moderate budget fluctuations if a portion of the load remains unfixed
  • Prefer a load-following product
  • Have a moderate understanding of power market movements

LOAD PROFILE WITH LAYERED PURCHASE

LayeredPurchaseChart

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