Power Contract Negotiations
Both the economy and tougher access to credit are having an impact on contract negotiations. According to this article in the Houston Chronicle, electric power retailers are more concerned today about customer defaults. As a consequence, rates for business customers may include risk premiums of $5 to $10 per megawatt hour, or as much as 1 cent per kilowatt hour. Retailers are also seeking address default risk by requiring larger deposits and using more limited term agreements.
