Electric power companies are made up of three distinct groups. Generating companies… the companies that make the power. Transmission companies… the companies that transport the power long distances. And Distribution companies .. the companies that bring the power to your home or business and where you pay your bill.
Each day, the Distribution companies tell the world how much power they will need the next day. The Generation companies bid on delivering that power. Walmart has established a fixed price for the amount of power they foresee using with this generation company. They know what their costs will for power. The generation company knows they have a fixed price coming for a percentage of their capacity.
Yes, the power goes into the grid and distribution system. It does not matter in the least which electrons flow into Walmarts warehouse.
Informative post. Many thanks.