Just like the local utility’s supply, the blended rate that we contract for is variable in nature. However, we minimize risk by locking in the “adder” portion (Ancillaries and Capacity charges) and buying index energy at the wholesale rate which is 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 negotiate the rate. FS Energy pre-approves the legal terms of the agreement between the building and the suppliers. By doing so, we save money and time for each individual building to address the legal language.
FS Energy also reviews and confirms that the building pays the appropriate sales tax.