What happens if NStars or National Grids rates go down after the pool is activated?
Although not very likely over the long term, that is a risk. Historical trends through the years, as well as the opinions of virtually all experts in the field, clearly indicate that rates will continue to be quite volatile in the short term, but will keep moving higher in the long term. Still, the possibility exists that rates could decline. Regardless, all participants are still obligated to honor their agreements. On the other hand, if energy prices INCREASE after the pool is activated— a common scenario— you wouldn’t want the supplier who won our business to be able to back out of the deal, would you? Well, it works the same way in the other direction, too.
