Define what the word fixed covers
Ask for a written list of included costs and permitted adjustments. Energy can be fixed while capacity, transmission or regulatory items are passed through. Usage bands and contract changes can also affect billing. Budget certainty depends on the complete agreement, not a product label. Make a separate note of the quantities and charges that can still vary.
Identify the index and settlement method
For a variable offer, request the exact index, location, averaging convention, fee and loss treatment. An hourly exposure is different from a monthly index. A flat monthly-usage model may be inadequate when interval prices matter. Ask what historical data is available and how an unusually high-price period would be billed before accepting that risk.
Match the product to operating flexibility
A business with little ability to shift essential activity may prioritize predictable supply costs. An operation with interval data and controllable load may be able to evaluate a more flexible product. That is a risk decision, not an assurance of savings. Check who will monitor the position, approve changes and explain variances to the business owner.
Compare scenarios without predicting a winner
Run a base case and explicitly chosen higher and lower price cases. Keep the same usage assumptions across products, or document why they differ. Include fees and pass-throughs where known. If a scenario produces an unaffordable expense, consider whether the business should carry that exposure even if the expected case looks attractive. A scenario is a planning exercise, not a forecast probability.
A practical example
Illustrative explanation, not a customer outcome.
Illustrative energy-only blend: 60% at 7.1¢/kWh and 40% at 6.0¢ produces 6.66¢/kWh. If the indexed portion is 8.5¢, the blend becomes 7.66¢. This excludes fees, losses and other contract charges and does not predict an index price.
Put the review into practice
| Review step | What to record |
|---|---|
| Match the request | Use the same utility, class, quantities, start and term. |
| Resolve exclusions | Ask how every omitted cost is calculated; unknown is not zero. |
| Read the exit terms | Review renewal, cancellation, relocation and usage conditions. |
| Retain the evidence | Save the dated quote, complete agreement and decision rationale. |
Questions worth asking
Can a fixed-rate bill rise?
Yes. Usage and components excluded from the fixed price can increase.
Is an indexed plan always cheaper over time?
No. Its result depends on market prices, fees, usage shape and the actual agreement.
Continue the comparison
Sources and scope
Reviewed October 15, 2026. Follow the source’s own data period, effective dates and current terms. Examples are hypothetical unless expressly identified as a dated published result. A source is context, not a guarantee of eligibility or a product endorsement.