Fixed Rate All inclusive – An all-inclusive fixed rate builds all charges (energy, capacity, transmission, ancillary services, LFR & RMR) into your fixed rate for the term of the agreement. Taxes are typically not included in the price.
Energy only – An energy only fixed rate locks in only the energy portion. All additional charges (capacity, transmission, ancillary services, LFR & RMR) will be passed through as separate line items to the customer. Additional costs defined below:
- Capacity Charges – Market-based mechanism to ensure adequate incentives for meeting each regions future needs. Capacity charges ensure reliability by paying for the capacity needed to meet both day-to-day and system reliability needs. See NE Capacity Q&A
- LFR – Locational Forward Reserve costs are utility charges assessed based on the geographical location of a business in a utility.
- Ancillary Services – Wholesale electric services and products required to facilitate delivery of energy to the host utility.
- RMR – Reliability Must-Run (electric generation plant’s status to maintain grid voltage/reliability)
- Transmission – The act or process of transporting electric energy in bulk from a source or sources of supply to other principal parts of the system or to other utility systems.
LBMP Price – (Locational Based Marginal Pricing) – This is very similar to the Nymex plus described for natural gas. The LBMP pricing plan is a variable energy rate with fixed delivery charges. While on this plan, you will be charged the average hourly rate for the energy portion (based on ISO published pricing) each month, plus the transportation costs that get locked in. A LBMP variable rate may be changed to fixed rates at any time.