Many have asked if Texas provides a good variable market rate for commercial businesses.  There are some definite savings available with a market rate. The savings come in greater if you know when it’s good to go after a heat rate product and when an MCPE product would be better.

The way you determine this is by looking at the historical natural gas heat rate and seeing if the current heat rate is in a good range to lock in at. If the heat rate is at a historically high level it would be good to look at other products.

Currently the historical data on MCPE pricing is very good in comparison to Natural gas prices. Electricity rates closely follow natural gas so this correlation is not too odd to consider. MCPE has averaged a couple cents lower then the average on fixed electricity rate contracts. For now it looks like Market Clearing Price for Energy offers an advantage over heat rate products.