Should You Lock In Energy Rates? A Guide for Facility Managers

If you manage a facility—or a few—around the Northeast, you know energy prices can be all over the place. One month, the bills look normal. Next, they spike. And it’s hard to know why. Choosing between a fixed or variable energy rate isn’t just a formality—it can really shape your budget.

Fixed vs. Variable: The Basics

A fixed rate stays the same for the entire contract. You get predictability. That’s nice when you want consistent bills and fewer surprises. It’s easier to plan your budget and know what’s coming each month.

A variable rate, though, changes with the market. Prices can drop—which is great—but they can also rise quickly. Some businesses like the flexibility; others don’t want to deal with that uncertainty. Honestly, it comes down to how much risk you’re willing to handle.

Here’s the thing: neither option is perfect. Fixed gives stability; variable gives a shot at savings. Many facility managers end up balancing both.

Finding the Right Balance

Some companies lock in part of their energy at a fixed rate and leave the rest variable. That way, they get stability plus some chance to save. It’s not perfect—but it works for a lot of facilities.

To make this work, you need to know your energy patterns. When do you use it the most? When do you use the least? That information makes it easier to pick the right mix.

Watching the Market Without Stress

Energy prices fluctuate for lots of reasons: weather, global events, and even maintenance far away. You can’t control it, but you can prepare. Looking at a few years of past usage helps spot trends. Add a small buffer in your budget for spikes—it matters more than you’d think.

If you’re on a variable plan, timing can help. Renewing or adjusting your contract when prices dip can save more than you realize. It’s not guessing; it’s paying attention.

Why Contract Flexibility Matters

Energy contracts aren’t all the same. Term lengths, exit clauses, and renewal rules can make a big difference. Businesses grow, shrink, or change schedules. Flexible contracts let you adjust without costly penalties.

Take the time to read the fine print. Ask questions. Understand what happens if your energy usage changes. A little extra effort now saves headaches later.

How Nordic Energy Helps

At Nordic Energy, we work with businesses across the Northeast to make energy choices easier. We understand the market, local trends, and what facility managers really need.

Whether fixed, variable, or a mix, we’ll walk you through options, help with contracts, and make sure your plan works for your budget—month to month, year to year.

Take the Next Step

If you’re ready to take a closer look at your energy strategy, reach out to us at Nordic Energy. We’ll review your options, explain what the market’s doing, and help you find a plan that fits your business. Energy prices will always change, but with the right strategy, you can stay ahead instead of reacting.

About the author

Corey Mitchell