Duquesne Light Energy was created in 2004 to offer competitive long-term fixed price energy supply contracts to large commercial and industrial customers as an alternative to default utility tariff rates in the Duquesne Light Company service area.
Since then, we have expanded our product portfolio to offer our clients the optimal mix of fixed and indexed priced products that meet their financial, operational and price risk tolerance. Our current electricity supply offerings include:
The Full Requirements Service product remains the most popular offering to DLE retail customers who want price certainty and predictable energy costs. With this product, retail customers purchase 100% of their electric generation service at a pre-determined price (cents/kWh) for the duration of the contract term. Customers bear minimal, if any, market price risk and incur the same cost for every kWh of energy consumed.
The Fixed Wholesale Block and Index product structure provides retail customers the ability to purchase fixed forward quantities of wholesale generation representing a portion of the customers' expected hourly energy usage. Actual hourly usage above or below the fixed forward purchase quantity is settled against the day ahead or real time total locational marginal price ("LMP") plus applicable retail adders. This product has been designed for those customers who desire some level of price certainty combined with a moderate level of hourly price risk.
This product was developed for those customers who desire a fixed price contract but, due to prevailing market conditions, choose to purchase hourly priced service for a period of time. DLE passes through actual hourly energy costs until such time as the retail customer chooses to lock-in a fixed price contract for the balance of the term. This product is an exceptionally valuable tool for customers to ride through periods of elevated forwarded prices, such as occurred during the summer of 2008. A customer who is reluctant to sign a long term fixed price contract can purchase hourly service from DLE, and convert to a fixed price contract at the optimal future date.
This product structure provides retail customers the ability to purchase a fixed percentage of the annual load obligation in a number of retail transaction confirmations in advance. Prior to the start of the delivery period, the contract price is set to the weighted average retail price of the confirmations executed to date. This provides the retail customer the ability to capitalize on forward market moves without the hourly price exposure of an indexed product.
The Portfolio Management Service product has been designed to meet the requirements of the largest and most sophisticated consumers in the competitive electricity market. With this product, retail customers purchase electric generation scheduling, coordination, and energy procurement services at a fixed fee plus energy at wholesale market prices. The risk associated with electricity market volatility is mitigated through active portfolio management on the customer's behalf, along with hedging strategies implemented by DLE. The customer assumes the maximum amount of market price risk exposure with the potential to minimize their overall electricity cost. This product creates an energy procurement partnership with active market participation by the customer and DLE.
This product enables a retail customer to purchase additional renewable energy credits bundled with their electric generation supply contract. DLE purchases and retires a fixed percentage of renewable energy credits associated with the client's annual energy use. The incremental cost to purchase the renewable energy credits is included in the customer's retail contract price.
The product, whether bundled with energy supply or marketed independently, facilitates customer access to the energy management and cost control expertise of DLE Account Management staff. DLE provides valuable insight into the energy procurement, usage strategy, obligation management and end-use equipment applications.