Bilski Claims at Issue Claim 1 1. A method for managing the consumption risk costs of a commodity sold by a commodity provider at a fixed price comprising the steps of: (a) initiating a series of transactions between said commodity provider and consumers of said commodity wherein said consumers purchase said commodity at a fixed rate based upon historical averages, said fixed rate corresponding to a risk position of said consumer; (b) identifying market participants for said commodity having a counter-risk position to said consumers; and (c) initiating a series of transactions between said commodity provider and said market participants at a second fixed rate such that said series of market participant transactions balances the risk position of said series of consumer transactions. Claim 4 4. A method for managing weather-related energy price risk costs sold by an energy provider at a fixed price comprising the steps of: (a) initiating a series of transactions between said energy provider and energy consumers wherein said energy consumers purchase energy at a fixed rate based upon historical averages, said fixed rate corresponding to a risk position of said consumers, wherein the fixed price for the consumer transaction is determined by the relationship: Fixed Bill Price = Fi + [(Ci + Ti + LDi) x (α + βE (Wi))] wherein, Fi = fixed costs in period i; Ci = variable costs in period i; Ti = variable long distance transportation costs in period i; LDi = variable local delivery costs in period i; E(Wi) = estimated location-specific weather indicator in period i; and α and ß are constants; (b) identifying other energy market participants having a counter-risk position to said consumers; and (c) initiating a series of transactions between said energy provider and said other energy market participants at a second fixed rate such that said series of transactions balances the risk position of said series of consumer transactions.
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