Settlement and Balancing – Realgy Energy Services

Settlement and Balancing costs occur each month and are customary and normal.

Balancing is the practice of reconciling the volume of natural gas/electricity forecast to be used to what was delivered or used. Usage or demand can vary based upon many, many factors but most commonly varies due to weather. Balancing occurs at various levels (supplier to pipeline, supplier to utility, etc.).

Settlement is similar to balancing but occurs to reconcile price differences for delivered volumes at various times during the settlement period. Energy pricing (both natural gas and electricity) can vary greatly month to month and within the month. Settlement reconciles the time-value of energy as it captures prices when the energy was delivered or transported compared to when it was actually required. In addition to settlement and balancing; if Realgy terminates the contract because of nonpayment or breach, you will be charged market related losses by Realgy in settling or balancing any quantity of a customer’s portion of supply cost.

A final settlement and balancing is incurred on the date your account is removed from Realgy’s service. In addition, if a customer is terminated for nonpayment or breach during their Term and it occurs within the month of their scheduled deliveries, Realgy calculates a proportion of the fixed cost of purchases made on a customer’s behalf of the ManagedPrice™ pool and what, if any costs will be incurred by the pool with the customer’s termination.

Example For Electric Customers: Fixed price of $0.060/kWh, market price at $0.05/kWh and, customer load is 1,000 kWh.
Final Settlement: ($0.06-$0.05) * 1,000 = $10 PAID to customer. If the market price was higher than the fixed price, Realgy would be owed the difference.

Example For Natural Gas Customers: Fixed price of $0.50/Therm, market price at $0.40/Therm and, customer load is 1,000 Therms.
Final Settlement: ($0.6-$0.5) * 1,000 = $10 PAID to customer. If the market price was higher than the fixed price, Realgy would be owed the difference.