Guide
Block+Index Strategy Guide
Balance budget stability with market opportunity. Match hedge size to your usage pattern and tolerance—then pressure suppliers with a clean RFP.
1) Sizing the block
Start with base-load. Use recent meter data and remove abnormal events. Consider seasonal shape and operational changes.
2) Risk posture
- Conservative: higher block, tighter bands
- Balanced: mid block, caps or collars
- Opportunistic: smaller block, wider bands
3) Contract terms that matter
- Swing/bandwidth, change-in-law, pass-throughs
- Credit thresholds and termination language
- Measurement, reconciliation, and markup visibility