You really want to keep it simple here. Deregulation is not complex its just about choice. Before deregulation you had no choice with deregulation you do
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Generation / Supply Delivery, Service, BillinOpen to Competition g & Reliability Remain the Same
Connecticut Delaware Illinois Maine Maryland Massachusetts New Hampshire New Jersey New York Ohio Pennsylvania Rhode Island Texas Washington DCThese States have deregulated their energy markets giving you the Power of Choice
Deregulated Electricity Generator Regulated Delivery (Utility Co)Deregulation means the generation portion of electricity serviceis open to competition. During the deregulation process thelocal utility is forced to sell their generation capacity, whatremains is a regulated delivery (utility) company that continuesto deliver electricity, maintains reliability, reads the meter, andprovides customer service to the consumer.
The objective of deregulation is to offer energy customers greaterchoice, both among suppliers and services. Ideally that will result inincreased market efficiency and dollar savings to the consumer.U.S. Department of Energy
World Oil Price Natural Gas Wellhead Price nominal dollars per barrel nominal dollars per thousand cubic feet Coal Minemouth Price Average Electricity Price nominal dollars per ton nominal cents per kWhAnnual Energy Outlook 2008
This chart shows the movement of electric prices on the wholesale market Electricity market is 10 times more volatile than the stock market Price is now low which makes it a great time to lock in prices long term
Project Example: COmpany) Project Example: Selecting an ESCO (Energy Supply Energy 5 early learning for customers to Brokersfinancial incentives centers Huge install solar Solar The Government and private financingobsolete Edison incandescent light bulb is options ½ Megawatt Industrial Warehouse Government mandated phasepricing Exceptional out starting in 2011 Wind GE made its last Edison bulb 9-23-2010 Installation available Lighting Upgrades have criminalized the sale salePrice: $200,000 Averagestates residential commission per Some direct LED and Inductive- bulbs$1,000 to 75% and last for $2,000 plus save up Power/Line Conditioners in the unilevel 50,000 hours Any project sizeDirect $2.5 MillionCommission: $33,000Price: Consultant EnergyHuge lighting retrofit opportunities – less than 2 year AuditsDirect Consultant Commission: $200,000Unilevel: $16,500 payback Affinity/Affiliate Fund-Raising Programs for Billions of bulbs will be replacedUnilevel: $100,000 Not-for-Profits and 501(C3) Corporations Financing available Sealants Fuel Pills
The multitude of options combined with dramatic price fluctuations makes thederegulated market infinitely more complex.Some energy companies can help your business buy energy at 20% to 50% off peakrates. We recommend using a company that has a simple and objective processbased on proven strategies that eliminates uncertainty and volatility risk for yourbusiness.Use an energy broker that connects businesses with the right supplier and the right contract at the lowest possible rate. These are just a few of the available energy providers
Variable rate and hybrid contracts, on the surface, appear to save you money but actuallycost you more than a fixed all inclusive rate contract. You should choose your supplierbased on total term cost not just the rate you get today. A business that makes adecision by comparing rates only are often surprised by the volatility and hidden pass-thru charges which can add 25% or more to the energy cost.
The Plan You Should Choose Depends On The Amount of Risk That You Are Willing To Take Hourly Priced Month To Month Hybrid Fixed All In Variable Rate Variable Rate Partial Fixed Partial No Pass Thru With Pass Thru With Pass Thru Indexed Price varies Price varies This contract type is Eliminates all hourly based Based on very specialized – for risk, this rate is on market and monthly users with large night constant and can easily average market time loads includes all double or triple pass-thru charges, no bandwidth Risk: Risk: Risk : Extremely High Very High High For Most Risk: NoneMost businesses lack the time, expertise, and tools to track the energy market and makegood purchasing decisions. Businesses today rely on experts when it comes tofinancial, insurance real estate and other complex transactions.
Retail Seafood House Paying $3,000 MonthlyAnnual Usage: 241,900 kWhOld Rate: $0.14555New All Inclusive Rate: $0.11993 Year Savings: $52,657Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate: $0.145000New All Inclusive Rate: $0.11753 Year Savings: $128,667Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate: $0.12490New All Inclusive Rate: $0.1253 Year Savings: $81,257, First Year Savings $5,100Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate: $0.130100New All Inclusive Rate $0.1174003 Year Savings: $1,215,484Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate: $0.1622New All Inclusive Rate $0.09113 Year Savings: $527,759