Scott,

 I emailed your question to a friend that works for the new company.  I think 
I know the answer to your questions but I want to get the exact details from 
him.  Basically, they will offer energy  online at a fixed price or some 
price that undercuts the current provider.  Then once their sales are large 
enough they will go to the wholesale market to hedge and lock in a profit.  
The risk is that they have built in enough margin to give them room to manage 
the price risk.  This is my best guess.  I will get back to you with more.

Phillip