Ideal for Savvy Electric Customers

Capacity pass-through allows you to float capacity charges while hedging other costs. Capacity refers to your peak demand costs, which can account for roughly 30% of the total energy cost. Floating capacity and actively managing peak consumption can reduce peak demand costs over time.


Suitable for Your Business If You:

  • Practice "peak shaving" in an effort to achieve better capacity tags in the second year of your contract 
  • Believe that a future decrease in capacity costs is likely
  • Can assume risk in exchange for the potential of reward
     

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Evaluation Matrix

 
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