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How Does Deregulated Energy Help Me Save Money?

Utilities Analyses, Inc (UAI) can put your company in a competitive position by leveraging extensive buying power to help you develop energy supply procurement programs. We can conduct an unbiased rate and tariff analyses that may result in substantial savings to you.

By Carl Shaw, Utilities Analyses, Inc.

With the deregulation of energy in many parts of the US, competition is now allowed between energy companies to provide electricity at discounted rates directly to their customers. These Energy Service Provider Companies (ESCOs) are licensed by individual states and are required to adhere to the applicable regulatory guidelines set by the Public Service Commissions (PSC) or Public Utility Commission (PUC).  Customers (end-users) also have the opportunity to work with electricity brokers or consultants who can compare different offers and provide additional services to help manage your monthly energy spending and costs.

If you are a business spending a minimum of $3000 a month  on your electric or natural gas bill, you may qualify to choose your electric or natural gas supplier in deregulated markets, which could create savings opportunities. Companies that can control or manage their electric concumption to to use more electricity more in the off-peak hours will find the greatest opportunity for savings. In deregulated markets, you now have a choice and can choose lower energy rates without any risk or local service change.

Your local energy service providers buy natural gas and electricity on the open market at wholesale prices based on the current market conditions and then bill their customers at increased rates to include margins and/or service fees.

Utilities Analyses, Inc (UAI) can put your company in a competitive position by leveraging extensive buying power to help you develop energy supply procurement programs. We can conduct an unbiased rate and tariff analyses that may result in substantial savings to you. We will conduct a risk free evaluation with no upfront cost to you. We simply find you the best rates available that meet your energy supply-side services needs.

Due to the current economic conditions and the complications deregulation has caused there are many new energy advisory companies popping up so be sure to know all the facts before making any decision.

What should I look for in choosing an Energy Bill Analysis and Utility Bill Audit & Refund Recovery company ?

When choosing a qualified utility tariff analysis & rate optimization firm to represent you, you should be aware of a few things:

First, be sure that the price you are quoted from your local provider includes all charges. Should you be talking to a consultant or broker, make sure the price is "fully loaded" meaning, does it include the 7% loss allowance (to deliver 100,000 kWh of electric, the providers must actually send 107,000 kWh, for there is a 7% loss in transmission)? Also does it include the local sales tax?

Both these important components should be included in the quote from your local provider price to make an accurate comparison. Often, companies will provide a low end quote without including sales tax and a load allowance. Be sure you are comparing apples to apples. Often when these figures are included, their real quote is much higher.

Does the company providing your quote have an Energy Information Management System in place, to make sure that you are getting the best available rate?

Information is power. Knowing what questions to ask will save you time and money.

There are opportunities to save from 10% to 25% in the deregulated electric market depending on your usage patterns.

UAI can help you develop a prudent energy procurement program that will ensure you are getting the best price for your electricity and natural gas.