A fixed-rate commercial energy contract locks your supply price per kWh or therm for the contract term — typically 12, 24, or 36 months. What happens in the wholesale market during that period doesn't affect your rate. For most commercial accounts, fixed-rate is the default choice.
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How Fixed-Rate Contracts Work
You negotiate a price with a retail supplier. That price is locked for the contract period. Whether wholesale electricity prices rise, fall, or spike (polar vortex, heat wave, generation outage) during your term, your supply rate stays the same. The risk you've transferred to the supplier is priced into your contracted rate.
What's Included in a Fixed Rate
Fixed rates typically cover supply and sometimes capacity, ancillary services, and line losses — depending on the contract structure. 'All-in' fixed rates include all supplier-controlled components. 'Pass-through' fixed rates have a fixed supply component but allow capacity and ancillary charges to be passed through at actual cost. All-in is simpler; pass-through can be lower at first but less predictable.
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Optimal Contract Length
Longer terms reduce administrative burden and lock in current market pricing. Shorter terms give more flexibility to reprice when markets move favorably. The right term depends on current market conditions, your operational outlook, and how long you're confident in your facility's needs. Most commercial accounts do well with 24-month terms.
When Fixed-Rate Outperforms Variable
Fixed-rate outperforms variable when wholesale markets rise during the contract period. Over any 12–36 month period, wholesale prices almost always move significantly in at least one direction. The Feb 2021 ERCOT winter event, ISO-NE polar vortex spikes, and summer heat wave events have all pushed variable-rate commercial customers to 3–10x their normal monthly bills.
Getting the Best Fixed Rate
The best fixed rate comes from a competitive process — not from calling one supplier and accepting their first offer. We submit your load profile to 30+ suppliers simultaneously, creating the competition that drives pricing down. The process is free, and the competitive pressure is real.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.