Wells Fargo & Co. plans to offer electricity price hedging to middle-market companies to help them manage their power costs. The hedging program is designed to benefit companies spending at least $1 million annually on electricity and help them purchase environmental management products to reduce their carbon footprint and offset greenhouse gas emissions.
Hedging gives companies greater control over both short- and long-term electricity costs and protects them from potentially large year-over-year fluctuations in the price of electricity, Wells Fargo explains.
As part of the hedging program's offerings, companies can purchase renewable energy credits (RECs) with financing from Wells Fargo that also supports the renewable energy industry.
‘RECs contribute to the development of new renewable energy sources such as wind, solar, geothermal and small hydroelectric by enabling companies to purchase the green attributes of the electricity generated by these sources,’ says Anil Suri, managing director in Wells Fargo's financial products group.