Just like shopping for office supplies, you too can shop for the energy your business uses! If your business is located within a deregulated state, you have the power to select a retail energy supplier for your business’ energy needs.
However, if you’re unfamiliar with energy choice, deregulation can be confusing, and it’s important to know what your options are when it comes to your business’ energy spend, so we’re going to break it down.
Wherever your business is located, there’s a utility that provides energy to your building. Retail energy suppliers are licensed to sell energy in the eligible utility’s territory, often at a lower rate.
Utilities generate and distribute electricity from facilities they own and operate. That energy is distributed to every business or home within the utility’s territory based on the average usage patterns within the territory. Energy suppliers typically obtain energy from wholesale power markets and can look at your business’ individual usage patterns to provide both pricing and products that fit how your business uses power.
For example, imagine going to a shoe store for a new pair of shoes and finding out the store only carries size 10 in standard width because that’s the average shoe size of their customers. That’s how the utility company determines their power pricing. Suppliers, on the other hand, are shoe stores with every size and width in stock, and can even customize a shoe specifically designed for your foot.
In short, working with a supplier allows you, as a business owner, to customize a price and plan based on how you use power, what your goals are and how comfortable you are with market risk exposure. Suppliers should look at your usage history and discuss with you why you should or should not work with a supplier, and what factors you can change regarding your usage patterns to help you cut costs and get better pricing for your energy.
It’s easy! To find out what energy suppliers service your area, you can contact your local utility commission. Once you find out who you can use as a supplier, make sure the supplier is reputable and can offer a variety of customizable price plans, like AEP Energy, that can meet your needs. Once you sign a contract, the retail energy supplier will notify your utility to make the switch. Depending on who you select, you may receive a separate bill from your new supplier or you’ll see your new energy supply price as a line item on your existing bill.
Questions? We’re happy to help! Contact us at 1-877-648-1936 to learn how AEP Energy can tailor an energy plan that’s right for your business.