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A variable rate plan is a retail electric product whose price may vary according to a method determined by the electric company (Retail Electric Provider/REP). The rate method must be explained on the product's Electricity Facts Label (EFL). For residential customers, a variable price product can only be a month-to-month contract.
Indexed rate plans are indexed to an external market, typically natural gas. The formula and price calculation are found on the plans' Electricity Facts Label (EFL). Indexed plans may have a fixed contract term or may be month-to-month.
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