 Quote:
Originally Posted by ERD50
Why would they offer a lock in, unless they thought prices on average would be less than that? Do you really want to bet against a power company on the future prices of power? I suspect they know more about it than you or I.
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There are only two possibilities here: either they think prices will fall or else they are able to lock in their costs on the futures market which makes offering a fixed 15-cent rate at least as profitable as offering it at spot plus markup.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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