Our Electricity Supply Products

We offer an array of financial tools to secure the price of your electricity: 


Fixed All-inclusive Price 
The Fixed All-Inclusive Price option allows customers to obtain a fixed price for the entire term of the contract. This pricing option includes the cost of energy, capacity, congestion, Daily RMR, renewable portfolio requirements, reserves, regulation, and all other ancillary expenses. It gives customers the most budget certainty and shields them from market price volatility.

Customers that have fixed budgets, want to lock-in their energy costs over an extended period of time, or cannot accept market price volatility should consider this option.

Risk Profiler:
Low market price exposure.

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Fixed Price with Pass-throughs 
The Fixed Price with Pass-Throughs option allows customers to fix a majority of their energy expenses while allowing for certain ancillaries to be passed-through. Depending on your location, the forward costs of Capacity, Congestion and/or Daily RMR may be difficult to predict and therefore difficult to include as a fixed price component of your contract.  You can remove from your fixed price cost elements of market uncertainty by paying for these elements on a cost pass-through basis.

This option is ideal for customers that want to fix a large majority of their energy costs but are willing to accept some degree of price uncertainty in order to pay no more then the cost incurred by TransCanada for those services.

Risk Profiler:
Low market price exposure.

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Index Pricing 
Index Pricing is a variable price option whereby customers pay over each hour the product of their hourly consumption and the hourly energy market clearing price.  Non-energy costs are covered in a fixed price -adder-, some of which can be treated on a cost-pass through basis.   Customers can convert some or all of the variable priced component to a fixed price at any time.

Ideal for customers who think that the cost of energy is going to decrease in the future and therefore do not want to be locked-in at a higher fixed rate. This is also beneficial for businesses that can curtail their energy use during periods of high prices. Customers choosing this product, however, accept all risk for market price volatility including the possibility of general increases in market prices and the possibility of significant price spikes when system conditions are stressed.

Risk Profiler:
High market price exposure.

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Block and Index Pricing
The Block and Index product is designed for customers that want to limit their exposure to complete Index Pricing by augmenting it with a block purchase. The block purchase will be a fixed quantity and price that will cover a certain portion of the customer-s load. TransCanada will settle the customer's incremental hourly consumption above the block against the hourly energy market clearing price and non-energy costs will be covered by a fixed 'adder'.

This product is right for customers who do not want to have their entire energy portfolio locked-in at a specific rate. It allows for customers to be partially exposed to market price volatility, while hedging the remainder of their load at a fixed rate. The size and make-up of the block is at the customer-s discretion and will depend on the customer-s risk tolerance.

Risk Profiler:
Medium market price exposure.

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Trigger Pricing
The -Trigger Pricing- option allows customers to choose a market rate they would want to lock into a contract. TransCanada will monitor market conditions, and will lock-in the pre-defined price as soon as the forward market falls to that level. Customers may elect Index Pricing while waiting to reach their trigger price.

This product is ideal for customers who have a specific price in mind and are willing to risk the index price in the interim. Favorable for customers who believe the market will fall to the appropriate -trigger- price and do not want to lock-in at current market prices.

Risk Profiler:
Medium market price exposure.

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Tranche Pricing
Tranche Pricing involves dividing a customer-s load into various tranches and fixing the rate of each tranche at different times. It allows customers the flexibility to determine the times when they would like to lock-in a percentage of their overall load. This is based on the investing methodology of dollar-cost averaging. Customers may elect Index Pricing for any tranches not yet locked into a fixed price.

This product removes the anxiety of trying to -time- the market by trying to lock-in a rate at the absolute low point in the market. It employs a strategy of partially hedging against volatile short term market swings, while preserving the ability to capture downturns in forward market prices later.

Risk Profiler:
Medium market price exposure.

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Related Information

U.S. Northeast Main Office
110 Turnpike Road
Westborough, MA 01581

Phone: 1.508.871.1850
Toll-free: 1.877.MEGAWAT
Email: retail_power@transcanada.com