Fixed rate v. fixed cost: Know the difference

In a deregulated state, you are offered the option to purchase electricity and natural gas from alternate energy suppliers instead of your local utility company. These suppliers often offer a fixed rate per kilowatt hour or per cubic foot for a specified period of time and for a specific quantity.

While a fixed rate can produce some cost savings over the standard utility offering, the monthly cost of energy is still subject to the amount of energy you actually consume which is affected by weather and other factors.  In addition, fixed rates do not take into account distribution costs which continue to be charged and collected by the local utility.  The complexities and unpredictability of energy expenses still remain with a fixed rate agreement.

Celeren’s fixed cost makes budgeting simple and accurate
Celeren’s innovative fixed cost program offers customers the ability to make the same single payment every month for energy expenses, regardless of weather and other variable expenses.  Our participants are notified 12 months in advance of any changes to this fixed payment, so energy budgeting becomes just another fixed-cost line item.