VIRIDIAN’S VARIABLE RATES
About Variable Rates
Currently all of Viridian’s rates are variable, meaning that
our monthly rate can change based on the wholesale
price of electricity. Sometimes our rates change each
month, and some months they stay the same. This means
the price can be higher during high demand months like
summer and winter, and lower during milder seasons.
Check out our historical rates available on the rates section of our website for details.
About Fixed Rates
Almost all utilities offer a fixed rate, which means their
rate will stay the same for a fixed period of time. This
time period is usually 6 months or one year, but can also
be shorter, depending on the local market. Because they
cannot change the rate in the middle of this time period,
fixed rates must factor in predicted demand and price
fluctuations. In order to hedge this risk, a utility’s fixed
rate is typically higher on a monthly basis.
Ad vantages
of a Variable Rate
Variable rates allow customers to experience savings
when the price of wholesale electricity is very low. Viridian can purchase electricity when prices are low and pass
this savings along to customers. While variable rates will
accordingly go up during high demand months, the savings is realized over the course of the year. Viridian’s
variable rates offer an average monthly savings vs. the
local utility in all of our markets.
Customers on variable rate plans
are afforded transparency, flexibility and annual cost savings that a
fixed rate cannot offer.
Historical Rate Savings by State
VIRIDIAN
12-MONTH SAVINGS EXAMPLE
FOR CONNECTICUT
AVERAGE SAVINGS*
11% $121.00
monthly
per year
* Based on 1,000 Kwh usage
SAVINGS BY STATE
PENNSYLVANIA
............
8%
MARYLAND
............
8%
AVERAGE
SAVINGS
CONNECTICUT
............
11%
POWER
NEW JERSEY
............
10%
Viridian’s Variable Rate, 2011-01-03_v1.0
Viridian’s prices are inherently competitive
with the utility and other suppliers. Retail suppliers exist solely to provide industry competition and thus lower the price consumers pay.
Why Price Changes
Basic economics: Supply and Demand. Rate fluctuation
is due to natural seasonal demand for electricity, which
increases wholesale electricity prices and, consequently,
variable rates like Viridian’s. In the winter, most consumers use more electricity for heat, increasing demand
across the grid. Likewise, in low demand months, the
price of electricity on the grid goes down. Since the utility has a fixed rate, their rate is designed to remain the
same throughout the year, even when low demand drives
down wholesale prices.
Viridian vs. The Utility
Viridian’s prices are inherently competitive with the utility and other suppliers. Retail suppliers exist solely to
provide industry competition and thus lower the price
consumers pay. Additionally, Viridian has no long-term
contracts and no fixed period of time that customers
must remain in our service, which means we have no other mechanism for customer retention than service satisfaction. Historically, Viridian’s Everyday Green rates have
been lower than the utility in all of our markets, while
still offering a greener product than the utility. It is natural and expected, however, for a variable rate to be close
to, or even higher than, the utility’s in some months due
to seasonal fluctuation described above. In such cases,
Viridian consumers still experience savings over time.
POWER
When Viridian’s Rate Goes
Above the Utility
This can happen. January 2011 is the first month that
one of our residential Everyday Green rates went above
the utility. Connecticut Light & Power, one of our largest
markets, lowered their fixed rate below Viridian’s January
rate. We are confident, however, that we will be able to
continue to offer competitive rates as the wholesale price
goes down after the high winter demand. If a customer is
ever dissatisfied, they do have the easy option to cancel
their service. However, service cancellation takes 1 to 2
billing cycles, and a variable rate will typically go down
after peak months. This means that it is beneficial for a
customer to stay with one variable rate plan in order to
realize savings over time.
The Savings are Real
Since we opened in CL&P in August 2009, the average
monthly savings for a CL&P Viridian customer, including
peak months and January’s higher rates, is 14%. Since
our service began, Viridian CL&P customers have saved
over $4 million on their electricity bills.
{BS.
OUR CUSTOMERS HAVE SAVED*
$6,991,260
3,998
2,351,879
Viridian is Different
VEHICLES
{
8
OUR CUSTOMERS HAVE REDUCED
CARBON EMISSION BY**
AVOIDED
GALLONS
46,094,694 LBS.
48,624
279
BARRELS
2,537
TRUCKS
HOMES
536,108
SEEDLINGS
4,458
ACRES
THAT
198
ACRES
December 17, 2010 Viridian customers in all markets
have saved over $6,991,260 and avoided 46,094,694
pounds of carbon emissions. We are proud to stand out
as pioneers in the retail electricity industry. While our
CARBON SEQUESCARBON our product
CO EMISSIONS rates are
CO competitive
CARBON of our markets,
EMISSIONS
in each
TERED ANNUALLY
SEQUESTERED
SEQUESTERED
CREATED FROM
CREATED FROM
cannot be compared to the average supplier’s. Other supBY FOREST
ANNUALLY BY
BY TREES
TANKER TRUCKS
ELECTRICITY USE
compete every
single month
be one one-SAVED FROM
PINEto
OR FIR
GROWN FOR
WORTH OF pliers might
OF HOMES
DEFORESTATION
FORESTS
10 YEARS
GASOLINE
IN 1 YEAR
hundredth
of a penny lower
than the next
guy, but that’s
a game that Viridian does not play. We have the bigger
picture in mind. Our foundation
isasbuilt
on**Source:
the http://www.epa.gov/cleanenergy/ene
idea that
* Data calculated
of 12/17/10.
the average consumer can purchase affordable, greener
* electricity, thus doing something better for the environment without paying more or changing their behavior.
More impressive than the figures above, CL&P customers have avoided over 19 million pounds in carbon emissions, which is the equivalent of planting 1.14 million
trees planted or over 21 million miles not driven. As of
ANNUAL
CO2 EMISSIONS
CO2 EMISSIONS
GREENHOUSE GAS
CREATED
CREATED
FROM
FROM BARRELS
EMISSIONS FROM
CL&P CUSTOMERS
AVOIDED
THAT EQUATES
TO:
PASSENGER
GASOLINE
OF OIL
VEHICLES
CONSUMED
CONSUMED
2
MILLION
19
198
7,040
OUR CUSTOMERS HAVE SAVED
2
OUR CUSTOMERS HAVE REDUC
$6,991,260
1.14
POUNDS OF CARBON EMISSIONS
. . .A .C. R.WHICH
ES
O .N .S. . . .
EQUATES TTO
3,998
MILLION
2,351,879
TREES PLANTED
. .V .E .H.I .C.L.E. S. . . . OR . . . .G.A.L. L. O. N. .S . .
2
CARBON SEQUESTERED ANNUALLY
BY FOREST
SAVED FROM
DEFORESTATION
46,094
48,624
279
2,5
BARRELS
TRUCKS
HOM
CO2 EMISSIONS
CO2 EMISSIONS
CO2 EMI
CREATED
CREATED
CREATED FROM
CREATED
FROM
FROM BARRELS
TANKER TRUCKS
ELECTRIC
CO EMISSIONS
21
AVOIDED BY
RECYCLING WASTE
INSTEAD OF SENDING
TO LANDFILL
MILLION
MILES NOT DRIVEN
e: http://www.epa.gov/cleanenergy/energy-resources/calculator.html
CO2 EMISSIONS
ANNUAL
GREENHOUSE GAS
POWER
EMISSIONS FROM