Your Energy Questions Answered
Find clear answers about electricity and gas pricing.
Frequently Asked Questions
What is Deregulation?
Deregulation involves the unbundling of functions traditionally served only by regulated utilities. Historically, utilities owned and/or controlled the generation, transmission, and distribution of electricity and natural gas. However, customers in deregulated energy markets are now able to choose the company that supplies their electricity. The transmission and distribution functions are still regulated and, as such, are still controlled by the local utility. Likewise, the local utility will continue to respond to emergency situations. Deregulation enables you to shop for the best price of electricity just as you do for your long-distance phone service today.
What Happens if I Have an Emergency or Power Outage?
Your local utility company will still be responsible for the maintenance and repair of the poles and power lines and gas lines. You will still call them in the event of an emergency or outage at the number provided on your bill. Electric Suppliers only cover your usage supply and pricing but not the delivery as the local utility owns and maintains the lines.
What Has Stayed the Same in Electric and Natural Gas Service With Deregulation?
Your current Transmission and Distribution Utility continues to deliver electricity and natural gas to your business. Your local utility company still responds to service interruptions and continues to maintain the poles, wires, and pipelines. You will continue to receive the same reliable service you are used to with your local utility company, regardless of which energy provider you receive service from. It’s helpful to think of electricity and natural gas deregulation like the deregulation that occurred several years ago in the long-distance telephone service market. Consumers now have the power to choose the long-distance carrier of their choice. However, regardless of which long-distance carrier they choose, their phone lines are still provided and serviced by the same local phone company.
What Does Choice Mean?
Customer choice means the ability to choose the company REP “Retail Energy Provider” that will supply your electricity or gas and negotiate the fixed price you pay and for how long you want to lock in and protect that fixed price for. Your utility company will still deliver the electricity or natural gas provided by the alternative supplier you choose at a lower cost to your business.
Why Would I Want to Choose?
You may choose the company that supplies your electricity based on your individual needs and preferences. Those can include budget certainty, the lowest price, terms of the agreement, or the best combination of all.
Who Will Read and Maintain the Meters at My Business?
Your local utility will continue to handle your monthly billing and meter reading as well as maintenance should there be a power outage ever. The supplier unless otherwise stated will be combined on the local utility bill for the supply portion.
Will Choosing a New Supplier Change the Reliability of My Service?
No. Your local utility company will never change as they own the poles, power lines, and gas pipelines. Regardless of whom you choose as a supplier, your utility will continue to deliver your natural gas or electricity to your home or business with the same reliability as before. You will continue to have access to your utility customer service representatives, and crews will still respond to emergencies and power outages.
If One Company Supplies My Electricity/Gas and Another Provides the Rest of My Electric/Gas Service, Who Will I Call About Outages or Repairs?
As a delivery customer, you will still call your utility company about electricity/gas outages and repairs (delivery refers to the facilities, including poles, transformers, wires, and pipelines, which carry and distribute the electricity/gas provided by your electric/gas supplier). If you have questions about the supply portion, you will call your new supplier.
How Will I Be Billed?
When you sign up for Electric or Natural Gas with a 3RD party Supplier they will generally consolidate the Supply charges on the local utility bill monthly. Some Suppliers or utilities do not allow “UCB” Utility Combined Billing so it is important to ask your Energy Consultant about combined billing when negotiating fixed pricing.
For Convenience most suppliers and local utilities will work together to simplify the billing process monthly with one combined monthly statement for both Delivery and Supply Charges.
What is an Alternate Retail Electricity Supplier?
A supplier is a company that provides electricity or natural gas to commercial and/or residential customers in a competitive market. To operate in a service territory, suppliers must be accepted by that state's regulatory agency and must meet certain criteria, which vary across utilities and states.
A supplier may also offer other energy-related services, such as energy efficiency programs. A competitive supplier can be affiliated with your local electric utility company or be an independent electricity supplier.
Can a Supplier Turn Off My Service?
No. Only your local utility is authorized to connect and/or disconnect your service. If you lose your supplier for any reason, you will be given advance notice and allowed time to choose a new supplier or return to the local utility.
Will I Save Money if I Switch Suppliers?
Your savings will depend on several factors, including how much you currently pay for electricity or natural gas, how much electricity or natural gas you use, and your agreement with the supplier.
Is There a Chance I Will Lose Service Temporarily When I Switch Companies?
No. There will be no interruption of service if you switch to a competitive supplier or from one utility to another.
How much of my energy bill relates to lighting in my facility?
As much as 50% of your energy bill could be related to lighting. HVAC systems and plug loads may contribute to the difference in non-production/manufacturing facilities.
What Can Be Done if I Want to Upgrade My Lighting System but Don’t Have the Money to Do It?
Lighting upgrades save so much money they are considered the “low-hanging fruit” of energy savings tactics. We have relationships with leasing entities that understand lighting retrofits and offer favorable terms that allow you to pay for the lease (3–4 years) from a portion of the savings.
In other words, the new lighting system can pay for itself. Most leases only require the client to pay a nominal processing fee. Once approved, the lessee pays only the first and last month’s payment. In some areas, electrical utility companies have rebates that reduce the project net costs.
We handle the entire process to save time and money!
What Has Changed in Electric and Natural Gas Service With Deregulation?
You can now choose to buy your energy from a different provider than the original provider for your area. These companies are called retail energy providers. Additionally, your bill may look different than bills you have received in the past, but each retail energy provider provides the same standard information.
Does Everyone Have the Option to Choose a New Electricity or Natural Gas Provider?
Unfortunately, Not.
Only businesses in “CHOICE STATES” can shop Electric and Natural Gas Supply Pricing options in Deregulated States and Cities. City-owned utilities and member-owned electric cooperatives “Municipalities” have the option of giving their customers a choice of providers or keeping things the same.
Why Use an Energy Procurement Advisor?
The answer is simple: we save you time and money. Staying in tune daily with energy markets, providers, and new opportunities is a full-time job. With Electric City Energy, you can capitalize on the benefits offered by deregulation without committing significant time and resources to understanding the complexity of the markets. We get to know your business and your specific energy needs. Then we negotiate with energy providers on your behalf to get the best rates and options. After you have an agreement with a provider, we continue to service your business, and if your needs change, we renegotiate new agreements that fit those needs. We do all the work. You receive all the benefits.
Why Use an Energy Broker / Consultant?
We save you time and money while allowing your focus to stay on your daily job tasks. We stay in tune daily with energy markets, providers, pricing changes and new opportunities for current clients as well as new client prospects.
With Electric City Energy, you can capitalize on the benefits offered by deregulation without committing significant time and resources to understanding the complexity of the markets. We get to know your business and your specific energy needs, and then we negotiate with energy providers on your behalf to get the best rates and options. After you have an agreement with a provider, we continue to service your business, and if your needs change, we will renegotiate and adjust to fit those needs. We do all the leg work and heavy lifting. You receive all the benefits.
Will I Notice a Change of Service When I Switch My Energy Provider?
No.
No matter which energy provider you choose the local utility will provide a seamless switch on the next available meter reading date. Changes will only occur on a meter reading date so that there are no partial months for supply to keep everything less confusing and more streamlined.
What Happens if My Energy Provider Stops Serving Customers?
If this occurs, you will not be without energy as the local utility will always be your default energy supplier should you not have a supplier. If a Supplier goes out of business or sells to another supply company, they typically will sell the book of clients and the new supplier will take over the existing agreement. (In the event that they do not sell the book of clients or go out of business we will give you a call to and search suppliers fixed energy pricing again for your review as suppliers are generally much lower than the local utility supply pricing and suppliers will offer a fixed price option whereas the local utility offers a variable price option that will adjust throughout the year.
Success is the sum of small efforts, repeated day in and day out.
— Robert Collier