Energetek provided this client a fixed electric supply contract. With the steady usage and favorable load factor, a fixed rate guaranteed price protection and savings. Energetek reviewed a year of utility bills from the client to determine average rate from PSE&G. Taking the average rate, market conditions, and seasonality into account, Energetek secured Mayfield Greenhouses a rate that will protect them from market fluctuations.
With the high volume of natural gas that Mayfield Greenhouses incurs monthly, Energetek was able to hedge consecutive fixed 10-month terms, while floating back to PSE&G for each January and February. Energetek’s team compared the hedged option to longer term contracts and determined that is was more cost effective to incorporate a market-based option. Factors led to the contract decision were PSE&G’s price to compare from 2006 to 2019 and natural gas futures through 2023. The client’s new term and rate keeps their weighted yearly average lower than staying strictly with the utility or selecting a longer term. Energetek fully monitors this client’s transfer from the energy supplier back to the utility company, leaving no room for error or the possibility of a variable rate from the supplier.