BLOCK-INDEX BENEFITS

  • Partial budget certainty
  • Reduced exposure to volatility
  • Customizable base load

This plan is ideal for buildings that maintain a consistent level of minimum electricity usage with periodic fluctuations in total usage.

A hybrid of fixed and variable rate plans, this option combines budget certainty for recurring usage with flexibility for variable usage.

In this scenario, knowing where to set your block is critical. Locking too high could result in recurring overspend, but locking too low subjects your budget to greater exposure to market volatility.

Real Estate Factors that affect this structure:

  • Occupancy/vacancy projections
  • HVAC systems (constant vs VAV)
  • Capital improvement projects