Re: The New Power Company

Scott,

I emailed your question to a friend that works for the new company. I think
I know the answer to your questions but I want to get the exact details from
him. Basically, they will offer energy online at a fixed price or some
price that undercuts the current provider. Then once their sales are large
enough they will go to the wholesale market to hedge and lock in a profit.
The risk is that they have built in enough margin to give them room to manage
the price risk. This is my best guess. I will get back to you with more.

Phillip