The blended rate that we will be contracting for will be variable in nature like the Con Edison rate. However, FirstService Energy will be minimizing the risk by locking in the “adder” portion (Ancillaries and Capacity charges) and buying index energy at the wholesale rate which will be tied to the NYMEX. While one portion (the energy portion) will float at the market and fluctuate, the adder portion will be fixed at a lower rate. Additionally, the other part of the savings will come from the aggregated way in which we are negotiating the rate. As part of the contract term, you have the option to lock-in a 100% fixed product at any time during the contract term.
