Direct Energy
Direct Energy is the largest electric company in North America. They came into Tyler Texas with ease and offer competitive pricing primarily to larger commercial facilities and industrial businesses. They are able to provide competitive electric pricing strategies such as heat factor and Market Clearing Price For Energy Pricing. They can blend in these alternative pricing structures with a fixed electric rate and as of September 2007 could offer a rate that averages about 7.4 cents a kilowatt hour for 12 months if it is blended in with MCPE. This keeps the electric rate below 8 cents while having half of the rate on a fixed price. Having 50% on a variable rate and 50% on a fixed rate protects you from over exposure while at the same time being able to take advantage of MCPE pricing which has averaged below 7 cents kwh the last 2 1/2 years. It’s hard to beat this variable rate plan.
What Energy Strategy Is Best
Several large commercial and industrial facilities we manage have their rate on a 100% MCPE rate. We do not recommend this as it exposes a company to more market risk then we would be comfortable with but we can’t stop someone from doing it. It has worked out in their favor so far and may continue to work out but like I have said earlier I would do a 50-50 blend.�
