Blended Rate Price Plan

Manage your business’ demand-based costs through AEP Energy’s Blended Rate Price Plan.

AEP Energy’s Blended Rate Price Plan allows you to reduce some of the risk associated with the ever-fluctuating energy market. Our Blended Rate Price Plan protects your costs by locking in pricing for a few key factors, including your energy rate and capacity costs set by the market, over the term of your agreement.

What type of business would benefit from this plan?

Businesses that are able to manage or reduce their energy consumption and subsequent Peak Load Contribution (PLC) will experience the most benefits from this plan. This could include turning off lights, turning up or down the thermostat or turning off appliances and small machines, especially during peak summer months.

Benefits

  • Rewards you for exercising control over your demand
  • Reflects true energy consumption
  • Eliminates market risk
  • Predictable energy rates throughout the duration of your contract

Avoid market risk

You have control over the other factors that make up your energy bill, including your demand and PLC. If you’re able to reduce your monthly demand, which can make up as much as 20-40% of your annual energy costs, you’ll see a reduction in your monthly bill. The amount of energy your business uses during peak summer months will also set your PLC costs for the following year, so if you can reduce consumption from June to August, your PLC costs will be less in the upcoming year.


The graph illustrates that capacity charges in your utility zone vary year-over-year, as shown by the blue line. However, with the Blended Rate Price Plan, your capacity rate is averaged and fixed for the duration of your contract term, as shown by the red line.

Contact us at 1-877-648-1936 or request a free energy consultation to learn more about how our Blended Rate Price Plan could help your business.