PWP will continue to be responsible for the reliability and quality of the delivery services. The ESP may provide various pricing and service options and a variety of contract terms and conditions including payment options, price management, as well as beyond the meter services to help you use energy more effectively. Since prices can be several times higher during your peak load period than they are during off-peak periods this cost management may be very important. PWP now manages costs in its current core rates such that the customer sees an average price over a long period of time. Pricing options for electricity can be compared to the commodity markets on the stock exchange.
Collars are a combination of minimum and maximum prices.
Caps and floors are the minimum and maximum prices you would pay. If prices from the ESP are based strictly on the PX or other market indices, you can expect large differences in your bills in different months and seasons. It will show unbundled prices. This unbundling will separate electricity service into its basic components. The ESP s bill will cover your electric energy purchase.